Michigan EIBC Newsletter: Energy Provisions in Inflation Reduction Act, Consumers Energy Settlement and More

Welcome to the weekly newsletter of the Michigan Energy Innovation Business Council (Michigan EIBC), the business voice for advanced energy in Michigan. Here’s what’s new this week:

Source: Wally Gobetzlicense.

Senate Deal to Offer Billions for Advanced Energy and Overhaul Tax Incentives

Many energy experts are still in a state of shock after the announcement this week that Sen. Joe Manchin (D-W. Va.) has finally reached a deal with Senate Democrats on a $700 billion  energy, tax and health care bill to be passed using the budget reconciliation process, only about a week after a different agreement with Manchin fell apart.

The Inflation Reduction Act of 2022, as the bill is known, is intended to put the U.S. on a path to cut emissions by roughly 40% by 2030.

The bill still needs a Senate vote and for a companion to be passed by the House, so much may change. But here are some of the most important energy-related provisions as it stands now:

  • The Section 45 production tax credit (PTC) would be reinstated for projects that begin construction before Jan. 1, 2025, and the Section 48 investment tax credit (ITC) would be extended through 2024 as well. After this, the bill creates a new technology-neutral credit where credits would be based on the greenhouse gas emissions rate of the project in question. This new technology-neutral credit would be in place through the later of 2032 or whenever emissions fall to 75% below 2022 levels.
  • The ITC would also be extended to new technologies, including energy storage, microgrid controllers and (for projects under 5 MW) interconnection costs.
  • The 30% tax credit for residential renewable energy projects (Section 25D), including solar, storage, and geothermal heat pumps, would be extended for 10 years.
  • The bill would create a new advanced energy manufacturing PTC for the domestic production of solar components, wind turbines, batteries and critical materials.
  • The bill would preserve a $7,500 credit for sales of new EVs and add a $4,000 credit for sales of used EVs, as reported by MIT Technology Review.
  • The bill offers $2 billion in grants and $3 billion in loans for facilities that produce electric, hybrid, or hydrogen-fuel-cell vehicles.
  • The bill offers $60 billion in spending related to environmental justice, including “$3 billion in block grants to address environmental health problems, $3 billion in grants for creating more access to transportation, $3 billion in grants for improving air quality near ports and $1 billion for clean heavy-duty vehicles like buses and garbage trucks,” as reported by Politico.





Consumers Energy Agrees to Changes to Voluntary Green Pricing Programs

On July 27, the Michigan Public Service Commission (MPSC) approved a settlement agreement between Consumers Energy and various groups, including Michigan EIBC, that will revise the utility’s voluntary green pricing programs to expand opportunities for residential and business customers to directly purchase renewable energy.

The settlement is the latest in a series of changes to the utilities’ voluntary green pricing programs that make them more competitive and, as a result, more attractive to customers.

Provisions in the settlement include:

  • Consumers Energy’s Solar Gardens program will have a new “anchor tenant” option, in which a central tenant like a school, church or business can host community solar projects. A similar option was included in DTE’s MIGreenPower program, as a result of a settlement reached last year.
  • Solar Gardens will also include a smaller “MicroBlock” option to which customers can subscribe, decreasing the cost of entry.
  • For the Large Customer Renewable Energy Program, a customer who expands from a 10-year term to a 15-year term will be able to do so at the same rate.
  • In the next voluntary green pricing case, Consumers Energy will include a proposal for a residential and small- and medium-sized business voluntary green pricing program.

Tickets On Sale for 10th Annual Michigan Energy Innovators Gala

Tickets and sponsorship opportunities are available for the 10th Annual Energy Innovators Gala on Sept. 28 at The Eastern in Detroit! Get your tickets nowPlease click here for more sponsorship details and contact Brianna Gerard at brianna@mieibc.org with any questions.

Tentative Timeline

5:00 pm | Cocktail hour + Networking (open bar + food trucks serving)

5:30 pm | VIP reception (open bar + food trucks serving)

6:00 pm | Keynote Speaker + Awards Program

7:30 pm | Continued Networking + Dessert & Coffee/Tea Bar

8:00 pm | Event Concludes

The Gala’s keynote speaker will be State of Michigan Treasurer Rachael Eubanks. Eubanks was appointed as Michigan’s 47th State Treasurer by Governor Gretchen Whitmer in January of 2019. She is committed to bringing creativity, collaboration, and commitment to identify and implement solutions to some of Michigan’s greatest challenges. She does this while also building upon Treasury’s culture of service to Michiganders, through continuous improvement and employee engagement, which are the foundation of Treasury’s mission to provide fair and efficient financial services on behalf of taxpayers, governments, students, and all Michiganders, for the long-term fiscal health and stability of our state. In 2016 she was appointed by Governor Rick Snyder (and reappointed in 2017) to serve on the Michigan Public Service Commission (MPSC) as a utility regulatory commissioner. In that capacity she reviewed and voted on hundreds of orders that helped shape Michigan’s energy future. In particular, the Commission had regulatory oversight over the implementation of two comprehensive energy law changes during her tenure. She served on several national organizations, including being elected as Vice President to the Organization of PJM States, Inc., and was on the Board of Directors of the National Association of Regulatory Utility Commissioners, where she was Chair of the Supplier and Workforce Development Subcommittee.

Thank you to our sponsors!

Gigawatt

Megawatt

Kilowatt

The Watt



Renewing Members

CBS Solar

Located in the Village of Copemish, Contractors Building Supply, Inc.  has been in the renewable energy business for nearly 40 years. We have a qualified team to meet all your renewable energy needs. From design and installation to energy assessing and consulting, CBS Solar is here to help you save money on your electric bill. From the smallest system for your home to the largest system for your business, CBS Solar has the experience and knowledge to do the job right!

Development Solutions Midwest
Development Solutions Midwest LLC provides services which lead to reducing our clients energy costs. We help reduce energy use through; energy purchasing costs; energy audits; strategic energy plans; ISO 50001; utility incentives; and project management.


 

Michigan Energy News

  • The Midcontinent Independent System Operator’s (MISO) decision this week to approve an over $10 billion tranche of transmission lines will help Michigan achieve its clean energy goals, James Gignac of the Union of Concerned Scientists writes.
  • MISO’s approval shows the grid operator “appear[s] to be cutting through the red tape that has held transmission back,” Citizens Utility Board of Michigan General Counsel John Liskey writes in the Detroit News.
  • Based on recommendations from the New Technologies and Business Model workgroup, part of the MI Power Grid Initiative, the MPSC directs utilities “to file proposed Michigan-specific uniform benefit cost analysis requirements, including a proposed societal cost test, that could be used in multiple types of dockets including pilot proposals, distribution planning, and rate cases.”
  • Members of the Defend Black Voters Coalition use song to protest proposed rate increases from DTE and Consumers Energy before MPSC commissioners at a public meeting in Detroit.
  • MPSC Commissioner Katherine Peretick talks to MiBiz about how there’s no need to panic about electricity shortages in Michigan.

National Energy News

  • Bloom Energy opens a new fuel cell production facility in California to meet the state’s growing demand for grid backup power. 
  • The US Senate is advancing a bill strongly supported by Michigan Sens. Debbie Stabenow  and Gary Peters aimed at incentivizing domestic semiconductor production
  • Canary Media provides an in-depth look into dynamic line rating and how it can allow high-voltage transmission lines to deliver more electricity than previously thought possible.
  • A spate of new solar manufacturing firms breaking ground in the U.S. shows domestic firms are finding ways to innovate to compete against China’s solar manufacturing.
  • The divide in an Ohio community over a proposed solar array shows the difficulties sometimes encountered when building renewable energy in rural areas.
  • Research on heat pump performance in Maine shows success dealing with subzero temperatures.

Job Board

Attention Michigan EIBC members: if you have a job announcement you would like in the newsletter, please send a paragraph describing the position and a link to apply to Matt Bandyk at matt@mieibc.org. Please include in the email a specific end date for the job posting.

Michigan EGLE

Environmental Engineer 12 (Building Trade Industry Engineer). Lansing, Mich.

As a recognized resource, this position serves as the Building Trade Industry Engineer for EGLE’s Energy Services, with responsibilities for supporting operations and maintenance activities within the public (state and municipal units of government and institutions) and commercial buildings’ sectors. These duties include, but are not limited to, grant management; interfacing with the public; providing in-depth engineering technical assistance for optimization of energy intensive building operating systems; developing strategies for reducing energy consumption in building; benchmarking building operations; technical advising on performance contracting; authoring technical reports; and serving as a technical resource to EGLE on building matters.

Michigan EGLE

Position: Environmental Engineer Specialist 13. Lansing, Mich.

This position serves as a state-wide specialist on clean energy manufacturing. The position works directly with Michigan’s manufacturing sector, the Michigan Economic Development Corporation, the Next Energy Center, Michigan’s Clean Technology Centers, Michigan’s universities and colleges, and the Department of Energy’s (U.S. DOE) National Laboratories and Office of Technology Transition. It also serves as an expert advisor on energy waste reduction and the environmental specialist on all projects requiring Title 42 of the United State Code (U.S.C.), Section 4321 et seq., National Environmental Policy Act (NEPA), approval from the U.S. DOE.

Rhombus Energy Solutions

Position: Government Funding Manager. Dearborn, Mich.

Responsibilities:

  • Manage Rhombus Energy Solutions public funding opportunities from planning, proposal, submission, negotiation and project management.
  • Develop key contacts at national and local level to influence spending on infrastructure Investment and Jobs Act and VW Consent Decree towards Rhombus Energy value propositions.
  • Identify pipeline of public funding opportunities for Rhombus Energy Solutions including federal, state, local DC Fast charging opportunities.
  • Respond to requests for quote (RFQ), requests for proposal (RFP) and requests for information (RFI) related to USDOT, USDOE national EV charging network. Craft abstracts and submission for public funding opportunities. Analyze and create budgets for funding opportunities including identifying cost shares and necessary resources to meet tender requirements.

Rhombus Energy Solutions

Position: Utility Account Manager. Dearborn, Mich.

Responsibilities:

  • Thorough knowledge of the market including the competitive landscape, articulates our key value propositions and differentiators to customers and influencers
  • Develops and maintain knowledge of relevant utility, state and federal requirements for EVSE and related infrastructure. Secures participation of Rhombus Energy Solutions into EVSE rebate programs. Influence utility program managers toward Rhombus Energy Solutions differentiators.
  • Document and understand funding opportunities and share within Rhombus, key customers, and distributors. Register Rhombus Energy Solutions across North American utility programs.
  • Engages frequently with partners, end users, electrical contractors, consulting engineers, OEMs, and other parties to support and drive growth of Rhombus Energy Solutions sales.

Michigan and National Energy Events

The 10th Annual Energy Innovators Gala will be held on Sept. 28 at The Eastern in Detroit. Get tickets here.

Opportunities

The U.S. Department of Energy’s Solar Energy Technologies Office (SETO) announced the Advancing Equity Through Workforce Partnerships funding opportunity, “which will award $10 million for the development of collaborative workforce programs that will facilitate the rapid deployment of solar energy technologies while supporting an inclusive workforce with opportunities for union membership.” Applicants must file a mandatory letter of intent by Sept. 13.

The U.S. Department of Energy’s Community Geothermal Heating and Cooling Design and Deployment Funding Opportunity Announcement (FOA) will award $300,000–$13 million for “projects that help communities design and deploy geothermal district heating and cooling systems, create related workforce training, and identify and address environmental justice concerns.” The application deadline is Oct. 11.

The Community Collaboration on Climate Change (C4) is seeking a full-time contract position to provide coordination of C4 leadership, organizational representatives, Grand Rapids residents, and the program deliverables.

State of Michigan DNR is going big in solar with projects in the ground, others in development and additional ones being planned. DNR has released a Request for Proposal for Prequalification Program for Renewable Energy PPAs: www.michigan.gov/sigmavss. Use “Guest Access” to get the RFP. A previous round of pre-qualifications netted solar companies that then were able to bid on a portfolio of DNR solar projects in Southwest Michigan. Another portfolio in the Northern Region is in the works for later this year. Only companies who pre-qualify can bid on future DNR solar projects. Please direct all correspondence to the Solicitation Manager, Laura Gyorkos at gyorkosL@michigan.gov.

The Michigan Economic Development Corporation’s PlanetM Testing Grant gives mobility companies the opportunity to access testing facilities around the state, including Mcity at the University of Michigan. Apply here.

Aaron Kurz, a former Michigan EIBC intern and University of Michigan alum, is working to build a state-level Science Policy Fellowship in Michigan, the Michigan Initiative for Science Policy (MISP). This program will place five recent STEM PhD recipients throughout the Michigan state government to provide a source of non-partisan, evidence-based information to decision makers. MISP will join the 10 other state programs throughout the country, including Idaho, Missouri, and New Jersey. Additional information about this initiative may be found at miscipol.org. If you are interested in providing written support for MISP, please contact Aaron at aaron.kurz@miscipol.org.