HOUSE BILL No. 5968

November 13, 2014, Introduced by Reps. Dianda, Kivela and Foster and referred to the Committee on Energy and Technology.

      A bill to amend 2008 PA 295, entitled

"Clean, renewable, and efficient energy act,"

by amending the title, the heading of part 5, and sections 3, 5,

7, 9, 11, 13, 21, 23, 25, 27, 29, 31, 33, 39, 45, 49, 173, 175,

177, and 179 (MCL 460.1003, 460.1005, 460.1007, 460.1009,

460.1011, 460.1013, 460.1021, 460.1023, 460.1025, 460.1027,

460.1029, 460.1031, 460.1033, 460.1039, 460.1045, 460.1049,

460.1173, 460.1175, 460.1177, and 460.1179).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1                              TITLE

 2        An act to require certain providers of electric service to

 1  establish renewable energy programs; to require certain providers

 2  of electric or natural gas service to establish energy

 3  optimization programs; to authorize the use of certain energy

 4  systems to meet the requirements of those programs; to provide

 5  for the approval of energy optimization service companies; to

 6  provide for certain charges on electric and natural gas bills; to

 7  promote energy conservation by state agencies and the public; to

 8  create a wind energy resource zone board and provide for its

 9  power and duties; to authorize the creation and implementation of

10  wind energy resource zones; to provide for expedited transmission

11  line siting certificates; to provide for a net metering customer

12  electric generation program and the responsibilities of certain

13  providers of electric service and customers with respect to net

14  metering; that program; to provide for fees; to prescribe the

15  powers and duties of certain state agencies and officials; to

16  require the promulgation of rules and the issuance of orders; and

17  to provide for civil sanctions, remedies, and penalties.

18        Sec. 3. As used in this act:

19        (a) "Advanced cleaner energy" means electricity generated

20  using an advanced cleaner energy system.

21        (b) "Advanced cleaner energy credit" means a credit

22  certified under section 43 that represents generated advanced

23  cleaner energy.

24        (c) "Advanced cleaner energy system" means any of the

25  following:

26        (i) A gasification facility.

27        (ii) An industrial cogeneration facility.

 1        (iii) A coal-fired electric generating facility if 85% or more

 2  of the carbon dioxide emissions are captured and permanently

 3  geologically sequestered.

 4        (iv) An electric generating facility or system that uses

 5  technologies not in commercial operation on the effective date of

 6  this act.October 6, 2008.

 7        (d) "Affiliated transmission company" means that term as

 8  defined in section 2 of the electric transmission line

 9  certification act, 1995 PA 30, MCL 460.562.

10        (e) "Applicable regional transmission organization" means a

11  nonprofit, member-based organization governed by an independent

12  board of directors that serves as the federal energy regulatory

13  commission-approved commission approved regional transmission

14  organization with oversight responsibility for the region that

15  includes the provider's service territory.

16        (f) "Biomass" means any organic matter that is not derived

17  from fossil fuels, that can be converted to usable fuel for the

18  production of energy, and that replenishes over a human, not a

19  geological, time frame, including, but not limited to, all of the

20  following:

21        (i) Agricultural crops and crop wastes.

22        (ii) Short-rotation energy crops.

23        (iii) Herbaceous plants.

24        (iv) Trees and wood, but only if derived from sustainably

25  managed forests or procurement systems, as defined in section

26  261c of the management and budget act, 1984 PA 431, MCL 18.1261c.

27        (v) Paper and pulp products.

 1        (vi) Precommercial wood thinning waste, brush, or yard waste.

 2        (vii) Wood wastes and residues from the processing of wood

 3  products or paper.

 4        (viii) Animal wastes.

 5        (ix) Wastewater sludge or sewage.

 6        (x) Aquatic plants.

 7        (xi) Food production and processing waste.

 8        (xii) Organic by-products from the production of biofuels.

 9        (g) "Board" means the wind energy resource zone board

10  created under section 143.

11        (h) "Carbon dioxide emissions benefits" means that the

12  carbon dioxide emissions per megawatt hour of electricity

13  generated by the advanced cleaner energy system are at least 85%

14  less or, for an integrated gasification combined cycle facility,

15  70% less than the average carbon dioxide emissions per megawatt

16  hour of electricity generated from all coal-fired electric

17  generating facilities operating in this state on January 1, 2008.

18        (i) "Commission" means the Michigan public service

19  commission.

20        (j) "Customer generation program" means the program created

21  under section 173.

22  (k) (j) "Customer meter" means an electric meter of a

23  provider's retail customer. Customer meter does not include a

24  municipal water pumping meter or additional meters at a single

25  site that were installed specifically to support interruptible

26  air conditioning, interruptible water heating, net metering,

27  customer generation, or time-of-day tariffs.

 1        Sec. 5. As used in this act:

 2        (a) "Electric provider", subject to sections 21(1), 23(1),

 3  and 25(1), means any of the following:

 4        (i) Any person or entity that is regulated by the commission

 5  for the purpose of selling electricity to retail customers in

 6  this state.

 7        (ii) A municipally-owned electric utility in this state.

 8        (iii) A cooperative electric utility in this state.

 9        (iv) Except as used in subpart B of part 2, an alternative

10  electric supplier licensed under section 10a of 1939 PA 3, MCL

11  460.10a.

12        (b) "Eligible electric generator" means that a methane

13  digester or a customer's renewable energy system, with

14  cogeneration system fueled by natural gas, or waste heat recovery

15  system that meets both of the following requirements:

16        (i) Is located in this state.

17        (ii) Has a generation capacity limited to the customer's

18  electric need and that does not exceed the following:that is

19  consistent with the safety and reliability requirements of the

20  customer's interconnection.

21        (i) For a renewable energy system, 150 kilowatts of aggregate

22  generation at a single site.

23        (ii) For a methane digester, 550 kilowatts of aggregate

24  generation at a single site.

25        (c) "Energy conservation" means the reduction of customer

26  energy use through the installation of measures or changes in

27  energy usage behavior. Energy conservation does not include the

 1  use of advanced cleaner energy systems.

 2        (d) "Energy efficiency" means a decrease in customer

 3  consumption of electricity or natural gas achieved through

 4  measures or programs that target customer behavior, equipment,

 5  devices, or materials without reducing the quality of energy

 6  services.

 7        (e) "Energy optimization", subject to subdivision (f), means

 8  all of the following:

 9        (i) Energy efficiency.

10        (ii) Load management, to the extent that the load management

11  reduces overall energy usage.

12        (iii) Energy conservation, but only to the extent that the

13  decreases in the consumption of electricity produced by energy

14  conservation are objectively measurable and attributable to an

15  energy optimization plan.

16        (f) Energy optimization does not include electric provider

17  infrastructure projects that are approved for cost recovery by

18  the commission other than as provided in this act.

19        (g) "Energy optimization credit" means a credit certified

20  pursuant to section 87 that represents achieved energy

21  optimization.

22        (h) "Energy optimization plan" or "EO plan" means a plan

23  approved under section 71.73.

24        (i) "Energy optimization standard" means the minimum energy

25  savings required to be achieved under section 77.

26        (j) "Energy star" means the voluntary partnership among the

27  United States department of energy, the United States

 1  environmental protection agency, product manufacturers, local

 2  utilities, and retailers to help promote energy efficient

 3  products by labeling with the energy star logo, to educate

 4  consumers about the benefits of energy efficiency, and to help

 5  promote energy efficiency in buildings by benchmarking and rating

 6  energy performance.

 7        (k) "Federal approval" means approval by the applicable

 8  regional transmission organization or other federal energy

 9  regulatory commission approved transmission planning process of a

10  transmission project that includes the transmission line. Federal

11  approval may be evidenced in any of the following manners:

12        (i) The proposed transmission line is part of a transmission

13  project included in the applicable regional transmission

14  organization's board-approved transmission expansion plan.

15        (ii) The applicable regional transmission organization has

16  informed the electric utility, affiliated transmission company,

17  or independent transmission company that a transmission project

18  submitted for an out-of-cycle project review has been approved by

19  the applicable regional transmission organization, and the

20  approved transmission project includes the proposed transmission

21  line.

22        (iii) If, after the effective date of this act, October 6,

23  2008, the applicable regional transmission organization utilizes

24  another approval process for transmission projects proposed by an

25  electric utility, affiliated transmission company, or independent

26  transmission company, the proposed transmission line is included

27  in a transmission project approved by the applicable regional

 1  transmission organization through the approval process developed

 2  after the effective date of this act.October 6, 2008.

 3        (iv) Any other federal energy regulatory commission approved

 4  transmission planning process for a transmission project.

 5        Sec. 7. As used in this act:

 6        (a) "Gasification facility" means a facility located in this

 7  state that uses a thermochemical process that does not involve

 8  direct combustion to produce synthesis gas, composed of carbon

 9  monoxide and hydrogen, from carbon-based feedstocks (such as

10  coal, petroleum coke, wood, biomass, hazardous waste, medical

11  waste, industrial waste, and solid waste, including, but not

12  limited to, municipal solid waste, electronic waste, and waste

13  described in section 11514 of the natural resources and

14  environmental protection act, 1994 PA 451, MCL 324.11514) and

15  that uses the synthesis gas or a mixture of the synthesis gas and

16  methane to generate electricity for commercial use. Gasification

17  facility includes the transmission lines, gas transportation

18  lines and facilities, and associated property and equipment

19  specifically attributable to such a facility. Gasification

20  facility includes, but is not limited to, an integrated

21  gasification combined cycle facility and a plasma arc

22  gasification facility.

23        (b) "Incremental costs of compliance" means the net revenue

24  required by an electric provider to comply with the renewable

25  energy standard, calculated as provided under section 47.

26        (c) "Independent transmission company" means that term as

27  defined in section 2 of the electric transmission line

 1  certification act, 1995 PA 30, MCL 460.562.

 2        (d) "Industrial cogeneration facility" means a facility that

 3  generates electricity using industrial thermal energy or

 4  industrial waste energy.

 5        (e) "Industrial thermal energy" means thermal energy that is

 6  a by-product of an industrial or manufacturing process and that

 7  would otherwise be wasted. For the purposes of this subdivision,

 8  industrial or manufacturing process does not include the

 9  generation of electricity.

10        (f) "Industrial waste energy" means exhaust gas or flue gas

11  that is a by-product of an industrial or manufacturing process

12  and that would otherwise be wasted. For the purposes of this

13  subdivision, industrial or manufacturing process does not include

14  the generation of electricity.

15        (g) "Integrated gasification combined cycle facility" means

16  a gasification facility that uses a thermochemical process,

17  including high temperatures and controlled amounts of air and

18  oxygen, to break substances down into their molecular structures

19  and that uses exhaust heat to generate electricity.

20        (h) "LEED" means the leadership in energy and environmental

21  design green building rating system developed by the United

22  States green building council.

23        (i) "Load management" means measures or programs that target

24  equipment or devices to result in decreased peak electricity

25  demand such as by shifting demand from a peak to an off-peak

26  period.

27        (j) "Modified net metering" means a utility billing method

 1  that applies the power supply component of the full retail rate

 2  to the net of the bidirectional flow of kilowatt hours across the

 3  customer interconnection with the utility distribution system,

 4  during a billing period or time-of-use pricing period. A negative

 5  net metered quantity during the billing period or during each

 6  time-of-use pricing period within the billing period reflects net

 7  excess generation for which the customer is entitled to receive

 8  credit under section 177(4). Standby charges for modified net

 9  metering customers on an energy rate schedule shall be equal to

10  the retail distribution charge applied to the imputed customer

11  usage during the billing period. The imputed customer usage is

12  calculated as the sum of the metered on-site generation and the

13  net of the bidirectional flow of power across the customer

14  interconnection during the billing period. The commission shall

15  establish standby charges for modified net metering customers on

16  demand-based rate schedules that provide an equivalent

17  contribution to utility system costs.

18        Sec. 9. As used in this act:

19        (a) "Natural gas provider" means an investor-owned business

20  engaged in the sale and distribution of natural gas within this

21  state whose rates are regulated by the commission. However, as

22  used in subpart B of part 2, natural gas provider does not

23  include an alternative gas supplier licensed under section 9b of

24  1939 PA 3, MCL 460.9b.

25        (b) "Net metering" means a utility billing method that

26  applies the full retail rate to the net of the bidirectional flow

27  of kilowatt hours across the customer interconnection with the

 1  utility distribution system, during a billing period or time-of-

 2  use pricing period. A negative net metered quantity during the

 3  billing period or during each time-of-use pricing period within

 4  the billing period reflects net excess generation for which the

 5  customer is entitled to receive credit under section 177.

 6  (c) (b) "Plasma arc gasification facility" means a

 7  gasification facility that uses a plasma torch to break

 8  substances down into their molecular structures.

 9  (d) (c) "Provider" means an electric provider or a natural

10  gas provider.

11  (e) (d) "PURPA" means the public utility regulatory policies

12  act of 1978, Public Law 95-617.

13  (f) (e) "Qualifying small power production facility" means

14  that term as defined in 16 USC 824a-3.

15        Sec. 11. As used in this act:

16        (a) "Renewable energy" means electricity generated using a

17  renewable energy system.

18        (b) "Renewable energy capacity portfolio" means the number

19  of megawatts calculated under section 27(2) for a particular

20  year.

21        (c) "Renewable energy contract" means a contract to acquire

22  renewable energy and the associated renewable energy credits from

23  1 or more renewable energy systems.

24        (d) "Renewable energy credit" means a credit granted

25  pursuant to the certification and tracking program under section

26  41 that represents generated renewable energy.

27        (e) "Renewable energy credit portfolio" means the sum of the

 1  renewable energy credits achieved by a provider for a particular

 2  year.

 3        (f) "Renewable energy credit standard" means a minimum

 4  renewable energy portfolio required under section 27.

 5        (g) "Renewable energy generator" means a person that,

 6  together with its affiliates, has constructed or has owned and

 7  operated 1 or more renewable energy systems with combined gross

 8  generating capacity of at least 10 megawatts.

 9        (h) "Renewable energy plan" or "plan", means a plan approved

10  under section 21 or 23 or found to comply with this act under

11  section 25, with any amendments adopted under this act.

12        (i) "Renewable energy resource" means a resource that

13  naturally replenishes over a human, not a geological, time frame

14  and that is ultimately derived from solar power, water power, or

15  wind power. Renewable energy resource does not include petroleum,

16  nuclear, natural gas, or coal. A renewable energy resource comes

17  from the sun or from thermal inertia of the earth and minimizes

18  the output of toxic material in the conversion of the energy and

19  includes, but is not limited to, all of the following:

20        (i) Biomass.

21        (ii) Solar and solar thermal energy.

22        (iii) Wind energy.

23        (iv) Kinetic energy of moving water, including all of the

24  following:

25        (A) Waves, tides, or currents.

26        (B) Water released through a dam.

27        (v) Geothermal energy.

 1        (vi) Municipal solid waste.

 2        (vii) Landfill gas produced by municipal solid waste.

 3        (j) "Renewable energy standard" means the minimum renewable

 4  energy capacity portfolio, if applicable, and the renewable

 5  energy credit portfolio required to be achieved under section 27.

 6        (k) "Renewable energy system" means a facility, electricity

 7  generation system, or set of electricity generation systems that

 8  use 1 or more renewable energy resources to generate electricity.

 9  Renewable energy system includes an anaerobic digester or other

10  system to gasify biomass. Renewable energy system does not

11  include any of the following:

12        (i) A hydroelectric pumped storage facility.

13        (ii) A hydroelectric facility that uses a dam constructed

14  after the effective date of this act October 6, 2008 unless the

15  dam is a repair or replacement of a dam in existence on the

16  effective date of this act October 6, 2008 or an upgrade of a dam

17  in existence on the effective date of this act October 6, 2008

18  that increases its energy efficiency.

19        (iii) An incinerator unless the incinerator is a municipal

20  solid waste incinerator as defined in section 11504 of the

21  natural resources and environmental protection act, 1994 PA 451,

22  MCL 324.11504, that was brought into service before the effective

23  date of this act, October 6, 2008, including any of the

24  following:

25        (A) Any upgrade of such an incinerator that increases energy

26  efficiency.

27        (B) Any expansion of such an incinerator before the

 1  effective date of this act.October 6, 2008.

 2        (C) Any expansion of such an incinerator on or after the

 3  effective date of this act October 6, 2008 to an approximate

 4  design rated capacity of not more than 950 tons per day pursuant

 5  to the terms of a final request for proposals issued on or before

 6  October 1, 1986.

 7        (l) "Revenue recovery mechanism" means the mechanism for

 8  recovery of incremental costs of compliance established under

 9  section 21 for a provider whose rates are regulated by the

10  commission.

11        Sec. 13. As used in this act:

12        (a) "Site" means a contiguous site, regardless of the number

13  of meters at that site. A site that would be contiguous but for

14  the presence of a street, road, or highway shall be considered to

15  be contiguous for the purposes of this subdivision.

16        (b) "Transmission line" means all structures, equipment, and

17  real property necessary to transfer electricity at system bulk

18  supply voltage of 100 kilovolts or more.

19        (c) "True net metering" means a utility billing method that

20  applies the full retail rate to the net of the bidirectional flow

21  of kilowatt hours across the customer interconnection with the

22  utility distribution system, during a billing period or time-of-

23  use pricing period. A negative net metered quantity during the

24  billing period or during each time-of-use pricing period within

25  the billing period reflects net excess generation for which the

26  customer is entitled to receive credit under section 177(4).

27  (c) (d) "Utility system resource cost test" means a standard

 1  that is met for an investment in energy optimization if, on a

 2  life cycle basis, the total avoided supply-side costs to the

 3  provider, including representative values for electricity or

 4  natural gas supply, transmission, distribution, and other

 5  associated costs, are greater than the total costs to the

 6  provider of administering and delivering the energy optimization

 7  program, including net costs for any provider incentives paid by

 8  customers and capitalized costs recovered under section 89.

 9  (d) (e) "Wind energy conversion system" means a renewable

10  energy system that uses 1 or more wind turbines to generate

11  electricity and has a nameplate capacity of 100 kilowatts or

12  more.

13  (e) (f) "Wind energy resource zone" or "wind zone" means an

14  area designated by the commission under section 147.

15        Sec. 21. (1) This section applies only to electric providers

16  whose rates are regulated by the commission.

17        (2) Each electric provider shall file a proposed renewable

18  energy plan with the commission within 90 days after the

19  commission issues a temporary order under section 171. 191. The

20  proposed plan shall meet all of the following requirements:

21        (a) Describe how the electric provider will meet the

22  renewable energy standards.

23        (b) Specify whether the number of megawatt hours of

24  electricity used in the calculation of the renewable energy

25  credit portfolio will be weather-normalized or based on the

26  average number of megawatt hours of electricity sold by the

27  electric provider annually during the previous 3 years to retail

 1  customers in this state. Once the plan is approved by the

 2  commission, this option shall not be changed.

 3        (c) Include the expected incremental cost of compliance with

 4  the renewable energy standards for a 20-year period beginning

 5  when the plan is approved by the commission.

 6        (d) For an electric provider that had 1,000,000 or more

 7  retail customers in this state on January 1, 2008, describe the

 8  bidding process to be used by the electric provider under section

 9  33. The description shall include measures to be employed in the

10  preparation of requests for proposals and the handling and

11  evaluation of proposals received to ensure that any bidder that

12  is an affiliate of the electric utility provider is not afforded

13  a competitive advantage over any other bidder and that each

14  bidder, including any bidder that is an affiliate of the electric

15  provider, is treated in a fair and nondiscriminatory manner.

16        (3) The proposed plan shall establish a nonvolumetric

17  mechanism for the recovery of the incremental costs of compliance

18  within the electric provider's customer rates. However, the

19  electric provider shall amend the plan to establish, effective 1

20  year after the effective date of the 2014 act that amended this

21  section, a volumetric mechanism for the recovery of the

22  incremental costs of compliance within the electric provider's

23  customer rates in the same manner as other methods of generating

24  electricity. The volumetric charge shall be uniform across all

25  customer classes, subject to adjustment for line losses. The

26  revenue recovery mechanism shall not result in rate impacts that

27  exceed the monthly maximum retail rate impacts specified under

 1  section 45. The revenue recovery mechanism is subject to

 2  adjustment under sections 47(4) and 49. A customer participating

 3  in a commission-approved voluntary renewable energy program under

 4  an agreement in effect on the effective date of this act October

 5  6, 2008 shall not incur charges under the revenue recovery

 6  mechanism unless the charges under the revenue recovery mechanism

 7  exceed the charges the customer is incurring for the voluntary

 8  renewable energy program. In that case, the customer shall only

 9  incur the difference between the charge assessed under the

10  revenue recovery mechanism and the charges the customer is

11  incurring for the voluntary renewable energy program. The

12  limitation on charges applies only during the term of the

13  agreement, not including automatic agreement renewals, or until 1

14  year after the effective date of this act, October 6, 2009,

15  whichever is later. Before entering an agreement with a customer

16  to participate in a commission-approved voluntary renewable

17  energy program and before the last automatic monthly renewal of

18  such an agreement that will occur less than 1 year after the

19  effective date of this act, before October 6, 2009, an electric

20  provider shall notify the customer that the customer will be

21  responsible for the full applicable charges under the revenue

22  recovery mechanism and under the voluntary renewable energy

23  program as provided under this subsection.

24        (4) If proposed by the electric provider in its proposed

25  plan, the revenue recovery mechanism shall result in an

26  accumulation of reserve funds in advance of expenditure and the

27  creation of a regulatory liability that accrues interest at the

 1  average short-term borrowing rate available to the electric

 2  provider during the appropriate period. If proposed by the

 3  electric provider in its proposed plan, the commission shall

 4  establish a minimum balance of accumulated reserve funds for the

 5  purposes of section 47(4).

 6        (5) The commission shall conduct a contested case hearing on

 7  the proposed plan filed under subsection (2), pursuant to the

 8  administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 9  24.328. If a renewable energy generator files a petition to

10  intervene in the contested case in the manner prescribed by the

11  commission's rules for interventions generally, the commission

12  shall grant the petition. Subject to subsections (6) and (10),

13  after the hearing and within 90 days after the proposed plan is

14  filed with the commission, the commission shall approve, with any

15  changes consented to by the electric provider, or reject the

16  plan.

17        (6) The commission shall not approve an electric provider's

18  plan unless the commission determines both of the following:

19        (a) That the plan is reasonable and prudent. In making this

20  determination, the commission shall take into consideration

21  projected costs and whether or not projected costs included in

22  prior plans were exceeded.

23        (b) That the life-cycle cost of renewable energy acquired or

24  generated under the plan less the projected life-cycle net

25  savings associated with the provider's energy optimization plan

26  does not exceed the expected life-cycle cost of electricity

27  generated by a new conventional coal-fired combined cycle natural

 1  gas facility. In determining the expected life-cycle cost of

 2  electricity generated by a new conventional coal-fired facility,

 3  making this determination, the commission shall consider data

 4  from this state and the states of Ohio, Indiana, Illinois,

 5  Wisconsin, and Minnesota, including , if applicable, the life-

 6  cycle costs of the renewable energy system and new conventional

 7  coal-fired facilities. When determining the life-cycle costs of

 8  the renewable energy system and new conventional coal-fired

 9  combined cycle natural gas facilities, the commission shall use a

10  methodology that includes, but is not limited to, consideration

11  of the value of energy, capacity, and ancillary services. The

12  commission shall also consider other costs such as transmission,

13  economic benefits, and environmental costs, including, but not

14  limited to, greenhouse gas constraints or taxes. In performing

15  its assessment, the commission may utilize other available data,

16  including national or regional reports and data published by

17  federal or state governmental agencies, industry associations,

18  and consumer groups.

19        (7) An electric provider shall not begin recovery of the

20  incremental costs of compliance within its rates until the

21  commission has approved its proposed plan.

22        (8) Every 2 years after initial approval of a plan under

23  subsection (5) through 2015, the commission shall review the

24  plan. The commission shall conduct a contested case hearing on

25  the plan pursuant to the administrative procedures act of 1969,

26  1969 PA 306, MCL 24.201 to 24.328. Within 90 days of the

27  effective date of the 2014 act that amended this section, the

 1  commission shall issue an order scheduling a review of the plan

 2  of each electric provider before January 1, 2019. After that

 3  review, the commission shall review the plan every 3 years. If

 4  section 6s(1) of 1939 PA 3, MCL 460.6s, is amended to require an

 5  electric provider to submit an application to the commission

 6  seeking a certificate of necessity for a power supply plan

 7  including investments to be made over a specified period of time

 8  to meet current and future demand for electric generation and

 9  transmission for customers of that electric provider, an electric

10  provider shall include any proposed changes to its renewable

11  energy plan within its power supply plan and a separate contested

12  case on the electric provider's renewable energy plan shall not

13  be conducted under this section. The annual renewable cost

14  reconciliation under section 49 for that year may be joined with

15  the overall plan review in the same contested case hearing.

16  Subject to subsections (6) and (10), after the hearing, the

17  commission shall approve, with any changes consented to by the

18  electric provider, or reject the plan and any proposed amendments

19  to the plan.

20        (9) If an electric provider proposes to amend its plan at a

21  time other than during the biennial periodic review process under

22  subsection (8), the electric provider shall file the proposed

23  amendment with the commission. If the proposed amendment would

24  modify the revenue recovery mechanism, the commission shall

25  conduct a contested case hearing on the amendment pursuant to the

26  administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

27  24.328. The annual renewable cost reconciliation under section 49

 1  may be joined with the plan amendment in the same contested case

 2  proceeding. Subject to subsections (6) and (10), after the

 3  hearing and within 90 days after the amendment is filed, the

 4  commission shall approve, with any changes consented to by the

 5  electric provider, or reject the plan and the proposed amendment

 6  or amendments to the plan.

 7        (10) If the commission rejects a proposed plan or amendment

 8  under this section, the commission shall explain in writing the

 9  reasons for its determination.

10        Sec. 23. (1) This section applies only to alternative

11  electric suppliers and cooperative electric utilities that have

12  elected to become member-regulated under the electric cooperative

13  member-regulation act, 2008 PA 167, MCL 460.31 to 460.39.

14        (2) Each alternative electric supplier or cooperative

15  electric utility shall file a proposed renewable energy plan with

16  the commission within 90 days or 120 days, respectively, after

17  the commission issues a temporary order under section 171. 191.

18  The proposed plan shall meet all of the following requirements:

19        (a) Describe how the electric provider will meet the

20  renewable energy standards.

21        (b) Specify whether the number of megawatt hours of

22  electricity used in the calculation of the renewable energy

23  portfolio will be weather-normalized or based on the average

24  number of megawatt hours of electricity sold by the electric

25  provider annually during the previous 3 years to retail customers

26  in this state. Once the plan is approved by the commission, this

27  option shall not be changed.

 1        (3) The commission shall provide an opportunity for public

 2  comment on the proposed plan filed under subsection (2). After

 3  the opportunity for public comment and within 90 days after the

 4  proposed plan is filed with the commission, the commission shall

 5  approve, with any changes consented to by the electric provider,

 6  or reject the plan.

 7        (4) Every 2 years after initial approval of a plan under

 8  subsection (3) through 2015, the commission shall review the

 9  plan. Within 90 days of the effective date of the 2014 act that

10  amended this section, the commission shall issue an order

11  scheduling a review of the plan of each electric provider before

12  January 1, 2019. After that review, the commission shall review

13  the plan every 3 years. The commission shall provide an

14  opportunity for public comment on the plan. After the opportunity

15  for public comment, the commission shall approve, with any

16  changes consented to by the electric provider, or reject any

17  proposed amendments to the plan.

18        (5) If an electric provider proposes to amend its plan at a

19  time other than during the biennial periodic review process under

20  subsection (4), the electric provider shall file the proposed

21  amendment with the commission. The commission shall provide an

22  opportunity for public comment on the amendment. After the

23  opportunity for public comment and within 90 days after the

24  amendment is filed, the commission shall approve, with any

25  changes consented to by the electric provider, or reject the

26  amendment.

27        (6) If the commission rejects a proposed plan or amendment

 1  under this section, the commission shall explain in writing the

 2  reasons for its determination.

 3        Sec. 25. (1) This section applies only to municipally-owned

 4  electric utilities.

 5        (2) Each electric provider shall file a proposed renewable

 6  energy plan with the commission within 120 days after the

 7  commission issues a temporary order under section 171. 191. Two

 8  or more electric providers that each serve fewer than 15,000

 9  customers may file jointly. The proposed plan shall meet all of

10  the following requirements:

11        (a) Describe how the electric provider will meet the

12  renewable energy standards.

13        (b) Specify whether the number of megawatt hours of

14  electricity used in the calculation of the renewable energy

15  credit portfolio will be weather-normalized or based on the

16  average number of megawatt hours of electricity sold by the

17  electric provider annually during the previous 3 years to retail

18  customers in this state. Once the commission determines that the

19  proposed plan complies with this act, this option shall not be

20  changed.

21        (c) Include the expected incremental cost of compliance with

22  the renewable energy standards.

23        (d) Describe the manner in which the provider will allocate

24  costs.

25        (3) Subject to subsection (6), the commission shall provide

26  an opportunity for public comment on the proposed plan filed

27  under subsection (2). After the applicable opportunity for public

 1  comment and within 90 days after the proposed plan is filed with

 2  the commission, the commission shall determine whether the

 3  proposed plan complies with this act.

 4        (4) Every 2 years after the commission initially determines

 5  under subsection (3) that a renewable energy plan complies with

 6  this act through 2015, the commission shall review the plan.

 7  Within 90 days of the effective date of the 2014 act that amended

 8  this section, the commission shall issue an order scheduling a

 9  review of the plan of each electric provider before January 1,

10  2019. After that review, the commission shall review the plan

11  every 3 years. Subject to subsection (6), the commission shall

12  provide an opportunity for public comment on the plan. After the

13  applicable opportunity for public comment, the commission shall

14  determine whether any amendment to the plan proposed by the

15  provider complies with this act. The proposed amendment is

16  adopted if the commission determines that it complies with this

17  act.

18        (5) If a provider proposes to amend its renewable energy

19  plan at a time other than during the biennial periodic review

20  process under subsection (4), the provider shall file the

21  proposed amendment with the commission. Subject to subsection

22  (6), the commission shall provide an opportunity for public

23  comment on the amendment. After the applicable opportunity for

24  public comment and within 90 days after the amendment is filed,

25  the commission shall determine whether the proposed amendment to

26  the plan complies with this act. The proposed amendment is

27  adopted if the commission determines that it complies with this

 1  act.

 2        (6) The commission need not provide an opportunity for

 3  public comment under subsection (3), (4), or (5) if the governing

 4  body of the provider has already provided an opportunity for

 5  public comment and filed the comments with the commission.

 6        (7) If the commission determines that a proposed plan or

 7  amendment under this section does not comply with this act, the

 8  commission shall explain in writing the reasons for its

 9  determination.

10        Sec. 27. (1) Subject to sections 31 and 45, and in addition

11  to the requirements of subsection (3), an electric provider that

12  is an electric utility with 1,000,000 or more retail customers in

13  this state as of January 1, 2008 shall achieve a renewable energy

14  capacity portfolio of not less than the following:

15        (a) For an electric provider with more than 1,000,000 but

16  less than 2,000,000 retail electric customers in this state on

17  January 1, 2008, a renewable energy capacity portfolio of 200

18  megawatts by December 31, 2013 and 500 megawatts by December 31,

19  2015.

20        (b) For an electric provider with more than 2,000,000 retail

21  electric customers in this state on January 1, 2008, a renewable

22  energy capacity portfolio of 300 megawatts by December 31, 2013

23  and 600 megawatts by December 31, 2015.

24        (2) An electric provider's renewable energy capacity

25  portfolio shall be calculated by adding the following:

26        (a) The nameplate capacity in megawatts of renewable energy

27  systems owned by the electric provider that were not in

 1  commercial operation before the effective date of this

 2  act.October 6, 2008.

 3        (b) The capacity in megawatts of renewable energy that the

 4  electric provider is entitled to purchase under contracts that

 5  were not in effect before the effective date of this act.October

 6  6, 2008.

 7        (3) Subject to sections 31 and 45, an electric provider

 8  shall achieve a renewable energy credit portfolio as follows:

 9        (a) In 2012, 2013, 2014, and 2015, a renewable energy credit

10  portfolio based on the sum of the following:

11        (i) The number of renewable energy credits from electricity

12  generated in the 1-year period preceding the effective date of

13  this act October 6, 2008 that would have been transferred to the

14  electric provider pursuant to section 35(1), if this act had been

15  in effect during that 1-year period.

16        (ii) The number of renewable energy credits equal to the

17  number of megawatt hours of electricity produced or obtained by

18  the electric provider in the 1-year period preceding the

19  effective date of this act October 6, 2008 from renewable energy

20  systems for which recovery in electric rates was approved on the

21  effective date of this act.as of October 6, 2008.

22        (iii) Renewable energy credits in an amount calculated as

23  follows:

24        (A) Taking into account the number of renewable energy

25  credits under subparagraphs (i) and (ii), determine the number of

26  additional renewable energy credits that the electric provider

27  would need to reach a 10% renewable energy portfolio in that

 1  year.

 2        (B) Multiply the number under sub-subparagraph (A) by 20%

 3  for 2012, 33% for 2013, 50% for 2014, and 100% for 2015.

 4        (b) In 2016, and each year thereafter, maintain 2017, and

 5  2018, a renewable energy credit portfolio that consists of at

 6  least the same number of renewable energy credits as that were

 7  required in 2015 under by subdivision (a).

 8        (c) In 2019, a 15% renewable energy credit portfolio.

 9        (d) In 2020 and 2021, a renewable energy credit portfolio

10  that consists of at least the number of renewable energy credits

11  that were required in 2019 by subdivision (c).

12        (e) In 2022, a 19% renewable energy portfolio.

13        (f) In 2023 and 2024, a renewable energy credit portfolio

14  that consists of at least the number of renewable energy credits

15  that were required in 2022 by subdivision (e).

16        (g) In 2025 and each third year thereafter, a renewable

17  energy portfolio 4.5% higher than the third year preceding,

18  unless the commission determines upon review of an electric

19  provider's renewable energy plan that this requirement is not in

20  the public interest and establishes a lower requirement for that

21  electric provider.

22        (h) In years after 2025 in which subdivision (g) is not

23  applicable, a renewable energy credit portfolio that consists of

24  at least the same number of renewable energy credits as were

25  required in the last year in which subdivision (g) was

26  applicable.

27        (4) An electric provider's renewable energy credit portfolio

 1  shall be calculated as follows:

 2        (a) Determine the number of renewable energy credits used to

 3  comply with this subpart during the applicable year.

 4        (b) Divide by 1 of the following at the option of the

 5  electric provider as specified in its renewable energy plan:

 6        (i) The number of weather-normalized megawatt hours of

 7  electricity sold by the electric provider during the previous

 8  year to retail customers in this state.

 9        (ii) The average number of megawatt hours of electricity sold

10  by the electric provider annually during the previous 3 years to

11  retail customers in this state.

12        (c) Multiply the quotient under subdivision (b) by 100.

13        (5) Subject to subsection (6), each electric provider shall

14  meet the renewable energy credit standards with renewable energy

15  credits obtained by 1 or more of the following means:

16        (a) Generating electricity from renewable energy systems for

17  sale to retail customers.

18        (b) Purchasing or otherwise acquiring renewable energy

19  credits with or without the associated renewable energy.

20        (6) An electric provider may substitute energy optimization

21  credits, advanced cleaner energy credits with or without the

22  associated advanced cleaner energy, or a combination thereof for

23  renewable energy credits otherwise required to meet the renewable

24  energy credit standards if the substitution is approved by the

25  commission. However, commission approval is not required to

26  substitute advanced cleaner energy from industrial cogeneration

27  for renewable energy credits. The commission shall not approve a

 1  substitution unless the commission determines that the

 2  substitution is cost-effective compared to other sources of

 3  renewable energy credits and, if the substitution involves

 4  advanced cleaner energy credits, that the advanced cleaner energy

 5  system provides carbon dioxide emissions benefits. In determining

 6  whether the substitution of advanced cleaner energy credits is

 7  cost-effective, the commission shall include as part of the costs

 8  of the system the environmental costs attributed to the advanced

 9  cleaner energy system, including the costs of environmental

10  control equipment or greenhouse gas constraints or taxes. The

11  commission's determinations shall be made after a contested case

12  hearing that includes consultation with the department of

13  environmental quality on the issue of carbon dioxide emissions

14  benefits, if relevant, and environmental costs.

15        (7) Under subsection (6), energy optimization credits,

16  advanced cleaner energy credits, or a combination thereof shall

17  not be used by a provider to meet more than 10% of the renewable

18  energy credit standards. Advanced cleaner energy from advanced

19  cleaner energy systems in existence on January 1, 2008 shall not

20  be used by a provider to meet more than 70% of this 10% limit.

21  This 10% limit does not apply to advanced cleaner energy credits

22  from plasma arc gasification.

23        (8) Substitutions under subsection (6) shall be made at the

24  following rates per renewable energy credit:

25        (a) One energy optimization credit.

26        (b) One advanced cleaner energy credit from plasma arc

27  gasification or industrial cogeneration.

 1        (c) Ten advanced cleaner energy credits other than from

 2  plasma arc gasification or industrial cogeneration.

 3        Sec. 29. (1) Subject to subsection (2), a renewable energy

 4  system that is the source of renewable energy credits used to

 5  satisfy the renewable energy standards shall be either located

 6  outside of this state in the retail electric customer service

 7  territory of any provider that is not an alternative electric

 8  supplier or located anywhere in this state. For the purposes of

 9  this subsection, a retail electric customer service territory

10  shall be considered to be the territory recognized by the

11  commission on January 1, 2008 and any expansion of retail

12  electric customer service territory recognized by the commission

13  after January 1, 2008 under 1939 PA 3, MCL 460.1 to 460.10cc. The

14  commission may also expand a service territory for the purposes

15  of this subsection if a lack of transmission lines limits the

16  ability to obtain sufficient renewable energy from renewable

17  energy systems that meet the location requirement of this

18  subsection. meet 1 or more of the following requirements:

19        (a) Generate electricity that is delivered to a customer

20  located within this state.

21        (b) Diversify the resources that may be used to reliably

22  meet the energy needs of consumers in this state.

23        (c) Have been recognized by the commission as of January 1,

24  2014 as a source of renewable energy credits used to satisfy the

25  renewable energy standard.

26        (2) The renewable energy system location requirements in

27  subsection (1) do not apply if 1 or more of the following

 1  requirements are met:

 2        (a) The renewable energy system is a wind energy conversion

 3  system and the electricity generated by the wind energy system,

 4  or the renewable energy credits associated with that electricity,

 5  is being purchased under a contract in effect on January 1, 2008.

 6  If the electricity and associated renewable energy credits

 7  purchased under such a contract are used by an electric provider

 8  to meet renewable energy requirements established after January

 9  1, 2008 by the legislature of the state in which the wind energy

10  conversion system is located, the electric provider may, for the

11  purpose of meeting the renewable energy credit standard under

12  this act, obtain, by any means authorized under section 27, up to

13  the same number of replacement renewable energy credits from any

14  other wind energy conversion systems located in that state. This

15  subdivision shall not be utilized by an alternative electric

16  supplier unless the alternative electric supplier was licensed in

17  this state on January 1, 2008. Renewable energy credits from a

18  renewable energy system under a contract with an alternative

19  electric supplier under this subdivision shall not be used by

20  another electric provider to meet its requirements under this

21  part.

22        (b) The renewable energy system is a wind energy conversion

23  system that was under construction or operational and owned by an

24  electric provider on January 1, 2008. This subdivision shall not

25  be utilized by an alternative electric supplier.

26        (c) The renewable energy system is a wind energy conversion

27  system that includes multiple wind turbines, at least 1 of the

 1  wind turbines meets the location requirements of this section,

 2  and the remaining wind turbines are within 15 miles of a wind

 3  turbine that is part of that wind energy conversion system and

 4  that meets the location requirements of this section.

 5        (d) Before January 1, 2008, an electric provider serving not

 6  more than 75,000 retail electric customers in this state filed an

 7  application for a certificate of authority for the renewable

 8  energy system with a state regulatory commission in another state

 9  that is also served by the electric provider. However, renewable

10  energy credits shall not be granted under this subdivision for

11  electricity generated using more than 10.0 megawatts of nameplate

12  capacity of the renewable energy system.

13        (e) Electricity generated from the renewable energy system

14  is sold by a not-for-profit entity located in Indiana or

15  Wisconsin to a municipally-owned electric utility in this state

16  or cooperative electric utility in this state under a contract in

17  effect on January 1, 2008, and the electricity is not being used

18  to meet another state's standard for renewable energy.

19        (f) Electricity generated from the renewable energy system

20  is sold by a not-for-profit entity located in Ohio to a

21  municipally-owned electric utility in this state under a contract

22  approved by resolution of the governing body of the municipally-

23  owned electric utility by January 1, 2008, and the electricity is

24  not being used to meet another state's standard for renewable

25  energy. However, renewable energy credits shall not be granted

26  for electricity generated using more than 13.4 megawatts of

27  nameplate capacity of the renewable energy system.

 1        (g) All of the following requirements are met:

 2        (i) The renewable energy system is a wind energy system, is

 3  interconnected to the electric provider's transmission system,

 4  and is located in a state in which the electric provider has

 5  service territory.

 6        (ii) The electric provider competitively bid any contract for

 7  engineering, procurement, or construction of the renewable energy

 8  system, if the electric provider owns the renewable energy

 9  system, or for purchase of the renewable energy and associated

10  renewable energy credits from the renewable energy system, if the

11  provider does not own the renewable energy system, in a process

12  open to renewable energy systems sited in this state.

13        (iii) The renewable energy credits from the renewable energy

14  system are only used by that electric provider to meet the

15  renewable energy standard.

16        (iv) The electric provider is not an alternative electric

17  supplier.

18        (3) Advanced cleaner energy systems that are the source of

19  the advanced cleaner energy credits used under section 27 shall

20  be either located outside this state in the service territory of

21  any electric provider that is not an alternative electric

22  supplier or located anywhere in this state. meet 1 or more of the

23  following requirements:

24        (a) Generate electricity that is delivered to a customer

25  located within this state.

26        (b) Diversify the resources that may be used to reliably

27  meet the energy needs of consumers in this state.

 1        (c) Have been recognized by the commission as of January 1,

 2  2014 as a source of advanced cleaner energy credits used under

 3  section 27.

 4        Sec. 31. (1) Upon petition by an electric provider, the

 5  commission may for good cause grant 2 extensions of the 2015

 6  renewable energy standard deadline deadlines under section 27.

 7  Each extension shall be for up to 1 year.

 8        (2) If 2 extensions of the 2015 renewable energy standard

 9  deadline deadlines have been granted to an electric provider

10  under subsection (1), upon subsequent petition by the electric

11  provider at least 3 months before the expiration of the second

12  extended deadline, the commission shall, after consideration of

13  prior extension requests under this section and for good cause,

14  establish a revised renewable energy standard attainable by the

15  electric provider. If the electric provider achieves the revised

16  renewable energy standard, the provider is considered to be in

17  compliance with this subpart.

18        (3) An electric provider that makes a good faith effort to

19  spend the full amount of incremental costs of compliance as

20  outlined in its approved renewable energy plan and that complies

21  with its approved plan, subject to any approved extensions or

22  revisions, shall be considered to be in compliance with this

23  subpart. For an electric provider whose rates are regulated by

24  the commission or for a municipally owned electric utility,

25  complying with its approved plan for the purposes of this

26  subsection includes making a good-faith effort to spend the full

27  amount of the expected incremental costs of compliance as set

 1  forth in the plan.

 2        (4) As used in this section, "good cause" includes, but is

 3  not limited to, the electric provider's inability, as determined

 4  by the commission, to meet a renewable energy standard because of

 5  a renewable energy system feasibility limitation including, but

 6  not limited to, any of the following:

 7        (a) Renewable energy system site requirements, zoning,

 8  siting, land use issues, permits, including environmental

 9  permits, any certificate of need necessity process under section

10  6s of 1939 PA 3, MCL 460.6s, or any other necessary governmental

11  approvals that effectively limit availability of renewable energy

12  systems, if the electric provider exercised reasonable diligence

13  in attempting to secure the necessary governmental approvals. For

14  purposes of this subdivision, "reasonable diligence" includes,

15  but is not limited to, submitting timely applications for the

16  necessary governmental approvals and making good faith efforts to

17  ensure that the applications are administratively complete and

18  technically sufficient.

19        (b) Equipment cost or availability issues including

20  electrical equipment or renewable energy system component

21  shortages or high costs that effectively limit availability of

22  renewable energy systems.

23        (c) Cost, availability, or time requirements for electric

24  transmission and interconnection.

25        (d) Projected or actual unfavorable electric system

26  reliability or operational impacts.

27        (e) Labor shortages that effectively limit availability of

 1  renewable energy systems.

 2        (f) An order of a court of competent jurisdiction that

 3  effectively limits the availability of renewable energy systems.

 4        Sec. 33. (1) Subject to subsections (2) and (3), an electric

 5  provider that had 1,000,000 or more retail customers in this

 6  state on January 1, 2008 shall obtain the renewable energy

 7  credits that are necessary to meet the renewable energy credit

 8  standard in 2015 and thereafter as follows:

 9        (a) At the electric provider's option, up to but no more

10  than 50% of the renewable energy credits shall be from any of the

11  following:

12        (i) Renewable energy systems that were developed by and are

13  owned by the electric provider and each of which generates

14  electricity at a cost that is not more than 110% of the average

15  cost per megawatt hour of electricity purchased by that electric

16  provider pursuant to subdivision (b). An electric provider shall

17  competitively bid any contract for engineering, procurement, or

18  construction of any new renewable energy systems described in

19  this subdivision. However, an electric provider may consider

20  unsolicited proposals presented to it by a renewable energy

21  system developer outside of a competitive bid process. If the

22  provider determines that such an unsolicited proposal provides

23  opportunities that may not otherwise be available or commercially

24  practical, the provider may enter into a contract with the

25  developer.

26        (ii) Renewable energy systems that were developed by 1 or

27  more third parties pursuant to a contract with the electric

 1  provider under which the ownership of the renewable energy system

 2  may be transferred to the electric provider, but only after the

 3  renewable energy system begins commercial operation. Any such

 4  contract shall be executed after a competitive bidding process

 5  conducted pursuant to guidelines issued by the commission.

 6  However, an electric provider may consider unsolicited proposals

 7  presented to it by a renewable energy system developer outside of

 8  a competitive bid process. If the provider determines that such

 9  an unsolicited proposal provides opportunities that may not

10  otherwise be available or commercially practical, the provider

11  may enter into a contract with the developer. An affiliate of the

12  electric provider may submit a proposal in response to a request

13  for proposals, subject to the code of conduct under section

14  10a(4) of 1939 PA 3, MCL 460.10a, and the sanctions for violation

15  of the code under section 10c of 1939 PA 3, MCL 460.10c.

16        (b) At least 50% of the renewable energy credits shall be

17  from renewable energy contracts that do not require transfer of

18  ownership of the applicable renewable energy system to the

19  electric provider or from contracts for the purchase of renewable

20  energy credits without the associated renewable energy. A

21  renewable energy contract or contract for the purchase of

22  renewable energy credits under this subdivision shall be executed

23  after a competitive bidding process conducted pursuant to

24  guidelines issued by the commission. However, an electric

25  provider may consider unsolicited proposals presented to it

26  outside of a competitive bid process by a renewable energy system

27  developer that is not affiliated with the electric provider. If

 1  the provider determines that such an unsolicited proposal

 2  provides opportunities that may not otherwise be available or

 3  commercially practical, the provider may enter into a contract

 4  with the developer. The contract is subject to review and

 5  approval by the commission under section 21. An electric provider

 6  or its affiliate may not submit a proposal in response to its own

 7  request for proposals under this subdivision. If an electric

 8  provider selects a bid other than the lowest price conforming bid

 9  from a qualified bidder, the electric provider shall promptly

10  notify the commission. The commission shall determine in the

11  manner provided under section 37 whether the electric provider

12  had good cause for selecting that bid. If the commission

13  determines that the electric provider did not have good cause,

14  the commission shall disapprove the contract.

15        (2) Subsection (1) does not apply to either of the

16  following:

17        (a) Renewable energy credits that are transferred to the

18  electric provider pursuant to section 35(1).

19        (b) Renewable energy credits that are produced or obtained

20  by the electric provider from renewable energy systems for which

21  recovery in electric rates was approved as of the effective date

22  of this act, October 6, 2008, including renewable energy credits

23  resulting from biomass co-firing of electric generation

24  facilities in existence on the effective date of this act,

25  October 6, 2008, except to the extent the number of megawatt

26  hours of electricity annually generated by biomass co-firing

27  exceeds the number of megawatt hours generated during the 1-year

 1  period immediately preceding the effective date of this

 2  act.ending October 5, 2008.

 3        (3) An electric provider shall submit a contract entered

 4  into pursuant to subsection (1) to the commission for review and

 5  approval. If the commission approves the contract, it shall be

 6  considered to be consistent with the electric provider's

 7  renewable energy plan. The commission shall not approve a

 8  contract based on an unsolicited proposal unless the commission

 9  determines that the unsolicited proposal provides opportunities

10  that may not otherwise be available or commercially practical.

11        Sec. 39. (1) Except as otherwise provided in section 35(1),

12  1 renewable energy credit shall be granted to the owner of a

13  renewable energy system for each megawatt hour of electricity

14  generated from the renewable energy system, subject to all of the

15  following:

16        (a) If a renewable energy system uses both a renewable

17  energy resource and a nonrenewable energy resource to generate

18  electricity, the number of renewable energy credits granted shall

19  be based on the percentage of the electricity generated from the

20  renewable energy resource.

21        (b) A renewable energy credit shall not be granted for

22  renewable energy generated from a municipal solid waste

23  incinerator to the extent that the renewable energy was generated

24  by operating the incinerator in excess of the greater of the

25  following, as applicable:

26        (i) The incinerator's nameplate capacity rating on January 1,

27  2008.

 1        (ii) If the incinerator is expanded after the effective date

 2  of this act October 6, 2008 to an approximate continuous design

 3  rated capacity of not more than 950 tons per day pursuant to the

 4  terms of a final request for proposals issued not later than

 5  October 1986, the nameplate capacity rating required to

 6  accommodate that expansion.

 7        (c) A renewable energy credit shall not be granted for

 8  renewable energy the renewable attributes of which are used by an

 9  electric provider in a commission-approved voluntary renewable

10  energy program.

11        (2) Subject to subsection (3), the following additional

12  renewable energy credits, to be known as Michigan incentive

13  renewable energy credits, shall be granted under the following

14  circumstances:

15        (a) 2 renewable energy credits for each megawatt hour of

16  electricity from solar power.

17        (b) 1/5 renewable energy credit for each megawatt hour of

18  electricity generated from a renewable energy system , other than

19  wind, at peak demand time as determined by the commission.

20        (c) 1/5 renewable energy credit for each megawatt hour of

21  electricity generated from a renewable energy system during off-

22  peak hours, stored using advanced electric storage technology or

23  a hydroelectric pumped storage facility, and used during peak

24  hours. However, the number of renewable energy credits shall be

25  calculated based on the number of megawatt hours of renewable

26  energy used to charge the advanced electric storage technology or

27  fill the pumped storage facility, not the number of megawatt

 1  hours actually discharged or generated by discharge from the

 2  advanced energy storage facility or pumped storage facility.

 3        (d) 1/10 renewable energy credit for each megawatt hour of

 4  electricity generated from a renewable energy system constructed

 5  using equipment made in this state as determined by the

 6  commission. The additional credit under this subdivision is

 7  available for the first 3 years after the renewable energy system

 8  first produces electricity on a commercial basis.

 9        (e) 1/10 renewable energy credit for each megawatt hour of

10  electricity from a renewable energy system constructed using a

11  workforce composed of residents of this state as determined by

12  the commission. The additional credit under this subdivision is

13  available for the first 3 years after the renewable energy system

14  first produces electricity on a commercial basis.

15        (f) 1/10 renewable energy credit for each megawatt hour of

16  electricity generated under the customer generation program from

17  an eligible electric generator to reflect the avoidance of line

18  losses in delivering power to the customer. The commission, upon

19  evidence that cumulative line losses from transmission and

20  distribution are in a different ratio to delivered power, may

21  modify this incentive credit to reflect the actual avoidance of

22  line losses.

23        (3) A renewable energy credit expires at the earliest of the

24  following times:

25        (a) When used by an electric provider to comply with its

26  renewable energy credit standard.

27        (b) When substituted for an energy optimization credit under

 1  section 77.

 2        (c) Three years after the end of the month in which the

 3  renewable energy credit was generated.

 4        (4) A renewable energy credit associated with renewable

 5  energy generated within 120 days after the start of a calendar

 6  year may be used to satisfy the prior year's renewable energy

 7  standard and expires when so used.

 8        Sec. 45. (1) For Subject to section 21(3), for an electric

 9  provider whose rates are regulated by the commission, the

10  commission shall determine the appropriate charges for the

11  electric provider's tariffs that permit recovery of the

12  incremental cost of compliance subject to the retail rate impact

13  limits set forth in subsection (2). Any outstanding regulatory

14  assets or liabilities as of January 1, 2016 related to the

15  renewable energy program of an electric provider whose rates are

16  regulated by the commission shall be rolled into general rates in

17  a manner determined by the commission, with credits and

18  liabilities allocated to customer classes proportional to the

19  amounts paid by those classes under the revenue recovery

20  mechanism. Subsections (2), (3), and (4) do not apply after

21  December 31, 2015.

22        (2) An electric provider shall recover the incremental cost

23  of compliance with the renewable energy standards by an itemized

24  charge on the customer's bill for billing periods beginning not

25  earlier than 90 days after the commission approves the electric

26  provider's renewable energy plan under section 21 or 23 or

27  determines under section 25 that the plan complies with this act.

 1  An electric provider shall not comply with the renewable energy

 2  standards to the extent that, as determined by the commission,

 3  recovery of the incremental cost of compliance will have a retail

 4  rate impact that exceeds any of the following:

 5        (a) $3.00 per month per residential customer meter.

 6        (b) $16.58 per month per commercial secondary customer

 7  meter.

 8        (c) $187.50 per month per commercial primary or industrial

 9  customer meter.

10        (3) The retail rate impact limits of subsection (2) apply

11  only to the incremental costs of compliance and do not apply to

12  costs approved for recovery by the commission other than as

13  provided in this act.

14        (4) The incremental cost of compliance shall be calculated

15  for a 20-year period beginning with approval of the renewable

16  energy plan and shall be recovered on a levelized basis.

17        (5) In its billing statements for a residential customer,

18  each provider shall report to the residential customer all of the

19  following in a format consistent with other information on the

20  customer bill:

21        (a) An itemized monthly charge, expressed in dollars and

22  cents, collected from the customer for implementing the renewable

23  energy program requirements of this act. In the first bill issued

24  after the close of the previous year, an electric provider shall

25  notify each residential customer that the customer may be

26  entitled to an income tax credit to offset some of the annual

27  amounts collected for the renewable energy program.

 1        (b) An itemized monthly charge, expressed in dollars and

 2  cents, collected from the customer for implementing the energy

 3  optimization program requirements of this act.

 4        (c) An estimated monthly savings, expressed in dollars and

 5  cents, for that customer to reflect the reductions in the monthly

 6  energy bill produced by the energy optimization program under

 7  this act.

 8        (d) An estimated monthly savings, expressed in dollars and

 9  cents, for that customer to reflect the long-term, life-cycle,

10  levelized costs of building and operating new conventional coal-

11  fired combined cycle natural gas electric generating power plants

12  avoided under this act as determined by the commission.

13        (e) The website address at which the commission's annual

14  report under section 51 is posted.

15        (6) For the first year of the programs under this part, the

16  values reported under subsection (5) shall be estimates by the

17  commission. The values in following years under subsection (5)

18  shall be based on the provider's actual customer experiences. If

19  the provider is unable to provide customer-specific information

20  under subsection (5)(b) or (c), it shall instead specify the

21  state average itemized charge or savings, as applicable, for

22  residential customers. The provider shall make this calculation

23  based on a method approved by the commission.

24        (7) In determining long-term, life-cycle, levelized costs of

25  building and operating and acquiring nonrenewable electric

26  generating capacity and energy for the purpose of subsection

27  (5)(d), the commission shall consider historic and predicted

 1  costs of financing, construction, operation, maintenance, fuel

 2  supplies, environmental protection, and other appropriate

 3  elements of energy production. For purposes of this comparison,

 4  the capacity of avoided new conventional coal-fired combined

 5  cycle natural gas electric generating facilities shall be

 6  expressed in megawatts and avoided new conventional coal-fired

 7  combined cycle natural gas electricity generation shall be

 8  expressed in megawatt hours. Avoided costs shall be measured in

 9  cents per kilowatt hour.

10        Sec. 49. (1) This section applies only to an electric

11  provider whose rates are regulated by the commission. Concurrent

12  with the submission of each report under section 51, 51(1), the

13  commission shall commence an annual proceeding, to be known as a

14  renewable cost reconciliation, for each electric provider whose

15  rates are regulated by the commission. The renewable cost

16  reconciliation proceeding shall be conducted as a contested case

17  pursuant to the administrative procedures act of 1969, 1969 PA

18  306, MCL 24.201 to 24.328. Reasonable discovery shall be

19  permitted before and during the reconciliation proceeding to

20  assist in obtaining evidence concerning reconciliation issues

21  including, but not limited to, the reasonableness and prudence of

22  expenditures and the amounts collected pursuant to the revenue

23  recovery mechanism.

24        (2) At the renewable cost reconciliation, an electric

25  provider may propose any necessary modifications of the revenue

26  recovery mechanism to ensure the electric provider's recovery of

27  its incremental cost of compliance with the renewable energy

 1  standards.

 2        (3) The commission shall reconcile the pertinent revenues

 3  recorded and the allowance for the nonvolumetric revenue recovery

 4  mechanism with the amounts actually expensed and projected

 5  according to the electric provider's renewable energy plan. for

 6  compliance. The commission shall consider any issue regarding the

 7  reasonableness and prudence of expenses for which customers were

 8  charged in the relevant reconciliation period. In its order, the

 9  commission shall do all of the following:

10        (a) Make a determination of an electric provider's

11  compliance with the renewable energy standards, subject to

12  section 31.

13        (b) Adjust the revenue recovery mechanism for the

14  incremental costs of compliance. The commission shall ensure that

15  the retail rate impacts under this renewable cost reconciliation

16  revenue recovery mechanism do not exceed the maximum retail rate

17  impacts specified under section 45. 45(2), if applicable. The

18  commission shall ensure that the recovery mechanism is projected

19  to maintain a minimum balance of accumulated reserve so that a

20  regulatory asset does not accrue.

21        (c) Establish the price per megawatt hour for renewable

22  energy and advanced cleaner energy capacity and for renewable

23  energy and advanced cleaner energy to be recovered through the

24  power supply cost recovery clause under section 6j of 1939 PA 3,

25  MCL 460.6j, as outlined in section 47(2)(b)(iv).

26        (d) Adjust, if needed, the minimum balance of accumulated

27  reserve funds established under section 21.

 1        (4) If an electric provider has recorded a regulatory

 2  liability in any given month during the 20-year period beginning

 3  when the electric provider's plan is approved by the commission,

 4  interest on the regulatory liability balance shall be accrued at

 5  the average short-term borrowing rate available to the electric

 6  provider during the appropriate period, and shall be used to fund

 7  incremental costs of compliance incurred in subsequent periods

 8  within the 20-year period beginning when the electric provider's

 9  plan is approved by the commission.

10 PART 5.

11 NET METERING CUSTOMER GENERATION

12        Sec. 173. (1) The commission shall establish a statewide net

13  metering program by By order issued not later than 180 days after

14  the effective date of this act. the 2014 act that amended this

15  section, the commission shall establish a program by which any

16  customer of an electric utility or alternative electric supplier

17  may generate electricity using an eligible electric generator

18  interconnected with the local electric utility and operated

19  parallel to the distribution system. The value of electricity

20  generated by the customer shall be credited to the customer

21  pursuant to a fair value tariff, a standard-offer contract, or

22  net metering. However, an electric utility or alternative

23  electric supplier is only required to participate in the net

24  metering component of the customer generation program.

25        (2) No later than 180 days after the effective date of this

26  act, the 2014 act that amended this section, the commission shall

 1  promulgate rules regarding any time limits on the submission of

 2  net metering applications or customer applications to participate

 3  in the program, inspections of net metering equipment eligible

 4  electric generators, and any other matters the commission

 5  considers necessary to implement this part. Any rules adopted

 6  regarding time limits for approval of parallel operation shall

 7  recognize reliability and safety complications including those

 8  arising from equipment saturation, use of multiple technologies,

 9  and proximity to synchronous motor loads. The program shall apply

10  to all electric utilities and alternative electric suppliers in

11  this state. Except as otherwise provided under this part,

12  customers of any class are eligible to interconnect eligible

13  electric generators with the customer's local electric utility

14  and operate the generators in parallel with the distribution

15  system. The program shall be designed for a period of not less

16  than 10 years and limit each customer to generation capacity

17  designed to meet only the customer's electric needs. The

18  commission may waive the application, interconnection, and

19  installation requirements of this part for customers

20  participating in the net metering program under the commission's

21  March 29, 2005 order in case no. U-14346.

22        (2) An electric utility or alternative electric supplier is

23  not required to allow for net metering that is greater than 1% of

24  its in-state peak load for the preceding calendar year. The

25  utility or supplier shall notify the commission if its net

26  metering program reaches the 1% requirement under this

27  subsection. The 1% limit under this subsection shall be allocated

 1  as follows:

 2        (a) No more than 0.5% for customers with a system capable of

 3  generating 20 kilowatts or less.

 4        (b) No more than 0.25% for customers with a system capable

 5  of generating more than 20 kilowatts but not more than 150

 6  kilowatts.

 7        (c) No more than 0.25% for customers with a system capable

 8  of generating more than 150 kilowatts.

 9        (3) Selection of customers for participation in the net

10  metering program shall be based on the order in which the

11  applications for participation in the net metering program are

12  received by the electric utility or alternative electric

13  supplier.The selection of customer applicants for participation

14  in a customer generation program shall be based solely on meeting

15  the interconnection and equipment requirements for participation.

16  An electric utility or alternative electric supplier shall not

17  restrict the number of participants or the amount of generation

18  from the customer generation program unless, after a hearing, the

19  commission determines that the restriction is necessary to

20  protect the public health and safety or the integrity of the

21  distribution system.

22        (4) An electric utility or alternative electric supplier

23  shall not refuse to provide or discontinue electric service to a

24  customer solely for the reason that because the customer

25  participates in the net metering customer generation program.

26        (5) The customer generation program created under subsection

27  (1) shall include all of the following:

 1        (a) Statewide uniform interconnection requirements for all

 2  eligible electric generators. The interconnection requirements

 3  shall be designed to protect electric utility workers and

 4  equipment and the general public.

 5        (b) Net metering equipment and its installation must

 6  Requirements that an eligible electric generator and its

 7  installation meet all current local and state electric and

 8  construction code requirements. Any equipment that is certified

 9  by a nationally recognized testing laboratory to IEEE 1547.1

10  testing standards and in compliance with UL 1741 scope 1.1A,

11  effective May 7, 2007, or updates to those standards approved by

12  the commission and that is installed in compliance with this part

13  is considered to be eligible equipment. Within the time provided

14  by the commission in rules promulgated under subsection (1) and

15  consistent with good utility practice , and the protection of

16  electric utility workers, protection of electric utility

17  equipment, and protection of the general public, an electric

18  utility may study, confirm, and ensure that an eligible electric

19  generator installation at the customer's site meets the IEEE 1547

20  anti-islanding requirements or IEEE standards approved by the

21  commission that enable intentional islanding. Utility testing and

22  approval of the interconnection and execution of a parallel

23  operating agreement must be completed prior to before the

24  equipment operating is operated in parallel with the distribution

25  system of the utility.

26        (c) A uniform customer generation application form and

27  process to be used by all electric utilities and alternative

 1  electric suppliers in this state. Customers Applicants who are

 2  served by an alternative electric supplier shall submit a copy of

 3  the application to the electric utility for the customer's

 4  service area.

 5        (d) Net metering customers with a system capable of

 6  generating 20 kilowatts or less qualify for true net metering.

 7        (e) Net metering customers with a system capable of

 8  generating more than 20 kilowatts qualify for modified net

 9  metering.

10  (d) (6) Each A requirement that each electric utility and

11  alternative electric supplier shall maintain records of all

12  applications and up-to-date records of all active eligible

13  electric generators located within their its service area.

14        (6) The customer generation program shall include a

15  statewide uniform methodology by which an electric utility or

16  alternative electric supplier may establish a fair value tariff

17  if approved by the commission after a contested case hearing

18  under the administrative procedures act of 1969, 1969 PA 306, MCL

19  24.201 to 24.328. Both of the following apply to a fair value

20  tariff:

21        (a) A fair value tariff shall meet all of the following

22  requirements:

23        (i) Allow customer generation for immediate self-service

24  without any charge to the customer.

25        (ii) Apply the same delivery and power supply charge for

26  electricity delivered to a customer that participates in the

27  customer generation program as to a customer that is similarly

 1  situated but does not participate.

 2        (iii) Credit the customer for generation in excess of

 3  immediate customer self-service at a rate that meets both of the

 4  following requirements:

 5        (A) Is not less than the full retail rate for a customer

 6  that is similarly situated but does not participate in the

 7  customer generation program at the time of excess generation,

 8  minus the delivery charge.

 9        (B) Includes the value of avoided generation costs including

10  line losses, avoided costs of long-term generation capacity and

11  reserve requirements including line losses, avoided transmission

12  and distribution costs, and avoided health and environmental

13  effects.

14        (iv) Allow the customer to retain any renewable energy

15  credits associated with electricity generated by the customer's

16  eligible electric generator. The rate or terms of the tariff

17  shall not be based on consideration of whether or to whom the

18  customer sells the renewable energy credits. The customer may

19  sell the renewable energy credits to the electric utility, the

20  alternative electric supplier, or a third party under a separate

21  contract.

22        (v) Require a utility to recalculate a fair value tariff,

23  subject to commission approval, in any proceeding that changes

24  power supply tariffs.

25        (vi) Not impose any additional charges on a customer for

26  participation in the customer generation program.

27        (b) A fair value tariff may do any of the following:

 1        (i) If the tariff credits the customer for capacity without

 2  deducting for forced outages, deduct standby charges for an

 3  eligible electric generator with capacity in excess of 500

 4  kilowatts based on the product of the utility's market cost of

 5  capacity and the average peak-coincident forced outage rate of

 6  customer generators using similar generation technology.

 7        (ii) Based on known and measurable evidence of the cost or

 8  benefit of the customer generation program to the electric

 9  utility or alternative electric supplier, incorporate other

10  values into the fair value tariff, including credit for an

11  eligible electric generator that is installed at a high-value

12  location on the distribution grid.

13        (7) The customer generation program shall include uniform

14  provisions pursuant to which an electric utility or alternative

15  energy supplier may enter a standard-offer contract for

16  electricity generated by customers with eligible electric

17  generators. A standard-offer contract shall meet all of the

18  following requirements:

19        (a) Be on a form approved by the commission.

20        (b) In net present value, be economically equivalent to or

21  larger than the customer compensation that would be expected

22  under a fair value tariff and assign appropriate value to any

23  reduced uncertainty about future power supply costs for the

24  electric utility or alternative electric supplier and its other

25  customers.

26        (c) Provide a fixed price schedule for power delivered from

27  the eligible electric generator over the full term of the

 1  contract, subject to adjustment for changes in the consumer price

 2  index. As used in this subdivision, "consumer price index" means

 3  the most comprehensive index of consumer prices available for

 4  this state from the bureau of labor statistics of the United

 5  States department of labor.

 6        (d) Have a term of at least 20 years, unless a shorter term

 7  is agreed to by the parties.

 8        (e) Provide a satisfactory basis for the customer to finance

 9  the eligible electric generator through a lending institution

10  under normal commercial terms.

11        (f) Allow the customer to retain any renewable energy

12  credits associated with electricity generated by the customer's

13  eligible electric generator. The price or other terms of the

14  standard-offer contract shall not be based on consideration of

15  whether or to whom the customer sells the renewable energy

16  credits. The customer may sell the renewable energy credits to

17  the electric utility, the alternative electric supplier, or a

18  third party under a separate contract.

19        (8) The customer generation program shall include net

20  metering. An electric utility or alternative electric supplier

21  shall make net metering available to any customer that submits an

22  application. However, the commission may authorize an electric

23  utility or alternative electric supplier to suspend receipt of

24  applications to participate in net metering from customers with a

25  specified type of eligible electric generator with a capacity

26  exceeding 2 megawatts when the electric utility or alternative

27  supplier is offering a fair value tariff and a standard-offer

 1  contract approved by the commission for electricity from that

 2  type of eligible electric generator. The commission may waive the

 3  application, interconnection, and installation requirements under

 4  this part for customers participating in the net metering program

 5  under the commission's March 29, 2005 order in case no. U-14346.

 6        Sec. 175. (1) An electric utility or alternative electric

 7  supplier may charge a fee not to exceed $100.00 to process an

 8  application for net metering. to participate in the customer

 9  generation program. A customer with a system an eligible electric

10  generator capable of generating more than 20 kilowatts shall pay

11  all interconnection costs. A customer with a system capable of

12  generating more than 150 kilowatts shall pay standby costs. The

13  commission shall recognize the reasonable cost for each electric

14  utility and alternative electric supplier to operate a net

15  metering customer generation program. For an electric utility

16  with 1,000,000 or more retail customers in this state, the

17  commission shall include in that utility's nonfuel base rates all

18  costs of meeting all customer generation program requirements

19  except that all energy costs of the program shall be recovered

20  through the utility's power supply cost recovery mechanism under

21  sections 6j and 6k of 1939 PA 3, MCL 460.6j and 460.6k. For The

22  commission shall allow an electric utility with less fewer than

23  1,000,000 base distribution customers in this state , the

24  commission shall allow that utility to recover all energy costs

25  of the program through the power supply cost recovery mechanism

26  under sections 6j and 6k of 1939 PA 3, MCL 460.6j and 460.6k, and

27  shall develop a cost recovery mechanism for that utility to

 1  contemporaneously recover all other costs of meeting the program

 2  requirements.

 3        (2) The interconnection requirements of the net metering

 4  customer generation program shall provide that an electric

 5  utility or alternative electric supplier shall, subject to any

 6  time requirements imposed by the commission and upon reasonable

 7  written notice to the net metering customer participating in the

 8  customer generation program, perform testing and inspection of an

 9  interconnected eligible electric generator as is necessary to

10  determine that the system eligible electric generator complies

11  with all applicable electric safety, power quality, and

12  interconnection requirements. The costs of testing and inspection

13  are considered a cost of operating a net metering customer

14  generation program and shall be recovered under subsection (1).

15        (3) The interconnection requirements shall require all

16  eligible electric generators, alternative electric suppliers, and

17  electric utilities to comply with all applicable federal, state,

18  and local laws, rules, or regulations, and any national standards

19  as determined by the commission.

20        Sec. 177. (1) Electric In the customer generation program,

21  electric meters shall be used to determine the amount of the

22  customer's energy use in each billing period, net of any excess

23  energy the customer's eligible electric generator delivers to the

24  electric utility distribution system during that same billing

25  period. For a customer with a generation system an eligible

26  electric generator capable of generating more than 20 kilowatts,

27  the utility shall install and utilize a generation meter and a

 1  meter or meters capable of measuring the flow of energy in both

 2  directions. A customer with a system an eligible electric

 3  generator capable of generating more than 150 kilowatts shall pay

 4  the costs of installing any new meters.

 5        (2) An electric utility serving over 1,000,000 customers in

 6  this state may provide its customers participating in the net

 7  metering customer generation program, at no additional charge, a

 8  meter or meters capable of measuring the flow of energy in both

 9  directions.

10        (3) An electric utility serving fewer than 1,000,000

11  customers in this state shall provide a meter or meters described

12  in subsection (2) to customers participating in the net metering

13  customer generation program at cost. Only the incremental cost

14  above that for meters provided by the electric utility to

15  similarly situated nongenerating customers shall be paid by the

16  eligible customer participating in the customer generation

17  program.

18        (4) If the quantity value of electricity generated and

19  delivered to the electric utility distribution system by an

20  eligible electric generator during a billing period exceeds the

21  quantity value of electricity supplied from the electric utility

22  or alternative electric supplier during the billing period, the

23  eligible customer shall be credited by their the supplier of

24  electric generation service for the excess kilowatt hours value

25  generated during the billing period. The credit shall appear on

26  the bill for the following billing period and shall be limited to

27  the total power supply charges on that bill. Any excess kilowatt

 1  hours not used to offset electric generation charges in the next

 2  billing period will be carried forward to subsequent billing

 3  periods. Notwithstanding any law or regulation, net metering

 4  customers shall not receive credits for electric utility

 5  transmission or distribution charges. The credit per kilowatt

 6  hour for kilowatt hours delivered into the utility's distribution

 7  system shall be either of the following:The customer may elect in

 8  the application to participate in the customer generation program

 9  or by subsequent notice to the supplier of electric generation to

10  do any of the following:

11        (a) The monthly average real-time locational marginal price

12  for energy at the commercial pricing node within the electric

13  utility's distribution service territory, or for net metering

14  customers on a time-based rate schedule, the monthly average

15  real-time locational marginal price for energy at the commercial

16  pricing node within the electric utility's distribution service

17  territory during the time-of-use pricing period.Carry excess

18  credits forward to future billing periods until the customer

19  requests payment for any outstanding credit.

20        (b) The electric utility's or alternative electric

21  supplier's power supply component of the full retail rate during

22  the billing period or time-of-use pricing period.Transfer excess

23  credits to other accounts for the same customer or its affiliates

24  with the same electric utility or alternative electric supplier.

25        (c) Receive payment for outstanding credit in the billing

26  period following the end of each calendar year.

27        (d) Assign outstanding credit in the billing period

 1  following the end of each calendar year to a nonprofit

 2  organization that assists low-income households with energy

 3  efficiency.

 4        Sec. 179. An eligible electric generator The customer shall

 5  own any renewable energy credits granted for electricity

 6  generated by the customer under the net metering program created

 7  in this part.customer generation program established under

 8  section 173.