Environmental Law

States: California Tops Efficiency List; Michigan Adopts Renewable Goals

By Dennis Pfaff and Kevin Livingston, Editors

Michigan and California have won praise recently from energy efficiency advocates for their efforts to save electricity.

Michigan gained its notoriety by enacting SB 213 a bill that not only pushes utilities to improve efficiency but also mandates that they supply some of their electricity from renewable sources by 2015. The American Council for an Energy-Efficient Economy lauded the bill as a significant step forward for the state

Separately, the nonprofit organization put California at the top of its newest ranking of states employing energy efficiency measures as their "first fuel" in growing their economies.

Michigan Gov. Jennifer M. Granholm (pictured) signed the bill, plus two others -- HB 5524 and SB 1048 -- on Monday. She said that all together the legislative package would create jobs, diversify the state's economy and save customers money on their electric bills by ensuring that the bulk of Michigan's future energy needs are produced from renewable energy resources and energy efficiency savings. In a statement, Granholm said:

"This comprehensive package will create tens of thousands of new energy jobs by making Michigan even more attractive to job-creating companies that are looking for a place to expand as they meet the growing demand for energy from renewable sources like wind and solar power. It also helps reduce costs for our citizens by requiring new energy efficiency programs and reducing the need for additional coal-burning power plants."
 

According to Granholm's statement, and a report on the legislation from a U.S. Department of Energy publication, key provisions of the legislation include a renewable portfolio standard that requires utilities to obtain renewable energy credits equivalent to 10 percent of their supply by 2015. (By comparison, California has an aggressive renewable standard that establishes a 20 percent goal by 2010, and which may be beefed up in the future).

Additionally, under the Michigan legislation, large utilities will face further renewable capacity requirements, and electric providers will also have to meet 5.5 percent of their load demand through efficiency measures by 2015.Efficiency goals are also set for natural gas utilities.

The package also includes provisions to ensure that the renewable energy and energy efficiency technologies will save more money than they cost; an income tax credit to offset part of ratepayers' investment in renewable energy; a "net metering" law allowing customers to sell renewable energy back to the utilities, and an energy efficiency program for state government. Other provisions encourage wind power development.

An official of the energy efficiency organization, Martin Kushler, said in a statement that the legislation was "a significant achievement" for Michigan, which has had no utility energy efficiency resource programs since 1995. The organization has estimated that 17 other states have such programs. Said Kushler, a Michigan resident:

"This is a big step forward for Michigan, and personally, I'm pleased that my home state will no longer be known as the 'no-program control group' for energy program evaluations in other states."

In its state-by-state energy efficiency rankings, the organization looked at how the states were performing in eight areas: utility and public benefits programs and policies; transportation and land use; building codes; combined heat and power; appliance efficiency standards; energy efficiency in public buildings and vehicle fleets; research and development, and financial incentives for energy efficient technologies.

California ranked high in several areas, including utility and public benefits, a broad category that included spending on utility programs and energy savings targets. The state, which just recently moved forward with new energy efficiency building codes, also scored highly in that category, as well as several others. Florida, another state that recently acted to boost its stock of green buildings, moved up in the organization's rankings.

All the states' performances were laid out in some detail in the organization's full report.

Other states in the Top 10 included Oregon, Connecticut, Vermont, New York, Washington, Massachusetts, Minnesota, Wisconsin and New Jersey.

Maggie Eldridge, a lead author of the report, in a statement praised the top states for their leadership. Said Eldridge:

"By setting innovative policies and programs that help consumers save energy, states are using energy efficiency as the first line of defense against rising energy prices while increasing our nation’s energy security, fostering economic prosperity, and combating global warming." 

--Dennis Pfaff of Thelen LLP

Photo: Courtesy of Gov. Granholm's office

Full post as published by Climate Law Update on October 08, 2008 (boomark / email).