March 08, 2023, Introduced by Senators MCBROOM, IRWIN, GEISS, MCMORROW, CHANG, SANTANA, BAYER, POLEHANKI, SHINK, CAVANAGH, CAMILLERI, SINGH and DALEY and referred to the Committee on Energy and Environment.

A bill to amend 2008 PA 295, entitled

"Clean and renewable energy and energy waste reduction act,"

(MCL 460.1001 to 460.1211) by adding sections 235 and 237.

the people of the state of michigan enact:

Sec. 235. (1) By 1 year after the effective date of the amendatory act that added this section, the commission shall promulgate rules to do all of the following:

(a) Allow for the creation and financing of community solar facilities and for subscribers to receive bill credits.

(b) Ensure that all customer classes have opportunities to participate as subscribers to a community solar facility.

(c) Require that not less than 30% of the electricity produced by each community solar facility be reserved for low-income households and low-income service organizations.

(d) Prohibit an electric provider from removing a customer from the customer's applicable customer class because the customer subscribes to a community solar facility.

(e) Provide for the transferability and portability of subscriptions, including a subscriber's retention of a subscription to a community solar facility if the subscriber moves within the same electric provider's service territory.

(f) Provide for consumer protection in compliance with existing laws.

(g) Allow an electric provider to recover costs of administering bill credits.

(h) Modify existing interconnection standards, fees, and processes as needed to do both of the following:

(i) Facilitate the efficient and cost-effective interconnection of community solar facilities.

(ii) Allow an electric provider to recover reasonable interconnection costs for each community solar facility.

(i) Require that electric providers efficiently connect community solar facilities to the electrical distribution grid and not discriminate against community solar facilities.

(j) Ensure that prospective subscriber organizations have received interconnection agreements, have legal control of their sites, and have received all necessary nonministerial permits before applying for the program under this part.

(k) Otherwise implement this part.

(2) By 1 year after the effective date of the amendatory act that added this section, the commission shall establish applicable bill credit rates that meet both of the following requirements:

(a) Result in access to subscriptions for all customer classes.

(b) Are derived from the electric provider's total aggregate retail rate on a per-customer-class basis, excluding the commission-approved distribution cost components. In establishing applicable bill credit rates, the commission may consider proposed rules and proposed fees and charges.

Sec. 237. A subscriber organization is not considered to be an electric provider as a result of its ownership or operation of a community solar facility.

Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 153 of the 102nd Legislature is enacted into law.