State House panel backs bill making utilities use renewable energy

A bill that would require power companies to get at least 10 percent of their energy from renewable sources like wind power by 2015 received bipartisan approval by the Michigan House Committee on Energy and Technology on Wednesday.

Environmentalists said the measure would save ratepayers money, reduce greenhouse gas emissions and help Michigan compete for clean-energy jobs. Some cautioned, however, that the bill should be stronger and that it still faces legislative hurdles, especially in the Republican-controlled Senate.

Half of the states already require power companies to generate some portion of their energy from renewable resources, and some say Michigan’s lack of standards in this area has put it at a disadvantage in developing a sustainable energy plan.

Continued - If the House bill (H.B. 4562) becomes law, power companies would need 1,400 megawatts of additional power from renewable sources, said James Clift, policy director for the Michigan Environmental Council. “If 60 percent of that comes from wind power, it would involve building 2,000 to 3,000 wind turbines in Michigan.”

Clift said he believes the demand for those turbines would convince turbine manufacturers to locate in Michigan. He said existing wind turbine manufacturers have immense backlogs of orders, with waiting lists as long as three years.

Michigan has industrial facilities and available workers, and a wind turbine manufacturer could set up a functional production facility within a year if the state passes renewable energy portfolio standards, Clift said.

Rep. Dave Palsrok , R-Manistee, sits on the House Energy and Technology Committee and approved sending the bill to the full House. But he said he is concerned that renewable energy mandates could result in utility rate hikes.

“DTE told us that 20 percent of their electricity customers are already more than 90 days in arrears,” he said. Palsrock said he’s not sure how he will ultimately vote on the bill.

Gayle Miller, legislative director for the Sierra Club Michigan chapter, said she is concerned that the House bill includes language that would allow the harvesting and incineration of whole trees as a renewable energy practice. She said she’s also worried about listing energy from trash incineration as renewable.

“We don’t want people to switch to burning recyclables,” she said.

Renewable-energy advocates say state-level efforts to support the development of wind energy are critical to maintaining growth in that industry, particularly since the recent federal energy bill allows tax incentives for wind power to expire at the end of this year.