CHP Roadmap for Michigan; Proposed Federal Rule on Power Plant Emissions

A Roadmap for Combined Heat & Power in Michigan

According to a recent report released by the Michigan Energy Office and supported by the Institute for Energy Innovation (IEI), Michigan is well positioned to make Combined Heat and Power (CHP) a substantial portion of the energy portfolio in the state. Increased use of CHP systems can not only save companies money and energy, it also can create opportunities for a variety of businesses, including many of Michigan EIBC’s member companies.

The report titled “CHP Roadmap for Michigan” was developed by a project team that included Michigan EIBC member company 5 Lakes Energy along with Energy Resources Center, Michigan Energy Office, NextEnergy, and Sustainable Partners (SPART). As part of the stakeholder engagement process to develop the report, IEI held a series of roundtable discussions across Michigan in 2017. The report provides a guide forward for Michigan to incorporate CHP into the state’s future energy mix and take advantage of CHP’s various benefits. CHP is a proven technology that provides a highly efficient way to generate electricity and process heat in a single onsite system. The deployment of this technology results in significant economic, environmental, and resiliency benefits to the electric grid.

Michigan is home to 88 CHP systems with an installed capacity of 3,500 MW. The CHP Roadmap identifies, based on a least-cost analysis, that the ideal level of additional CHP deployment in Michigan for commercial and industrial customers is between 722 MW and 2,360 MW. The report considered projects to be viable if the payback period was 10 years or less for the public and institutional sectors and less than four years for the private sector. The report was funded by the Michigan Agency for Energy and the U.S. Department of Energy.

The Roadmap’s recommendations include:

  • Considering best practices in utility standby rates and Public Utility Regulatory Policies Act (PURPA) avoided cost/buyback rates.
  • Fully valuing CHP when considering costs and benefits of distributed energy resources.
  • Incorporating CHP as a resource in Michigan utility energy waste reduction plans.
  • Requiring utility integrated resource plans to consider CHP as both a supply-side and demand-side resource.
  • Updating interconnection standards to better align with new technologies and best practices.
  • Offering financial incentives for CHP adoption.
  • Promoting Property Assessed Clean Energy (PACE) financing and on-bill financing for CHP, which would allow customers to pay for projects as part of their utility bills.
  • Collaborating closely with leading CHP organizations.

Proposed EPA Rule to Replace Clean Power Plan

Yesterday, the Environmental Protection Agency announced a proposal called the Affordable Clean Energy (ACE) rule, which would loosen regulations on power plants. It is widely viewed as an attempt by the Administration to support the coal industry. The ACE rule would replace the Clean Power Plan, which was released under the Obama Administration in 2015. While the Clean Power Plan was not implemented, the proposed plan outlined standards limiting carbon emissions from coal-fired power plants and helped inform state and regional planning efforts.

Notably, the proposed ACE rule would establish guidelines for states to develop plans to address greenhouse gas emissions from existing coal-fired power plants. The plan prioritizes efficiency measures at existing coal-fired power plants, providing support to states to develop the appropriate plans to keep such plants operational while still reducing emissions.

The proposal must now undergo a public comment period before being finalized. If it is finalized in its current state and withstands any legal challenges, it is unclear what the impact of the rule would be on the energy industry. Some have argued that the coal industry – which the proposal is meant to protect – will continue to struggle due to market forces that have seen advanced energy technologies emerge as preferred generation sources in recent years. Others argue that the rules announced yesterday could be more influential if paired with broader action across multiple federal agencies to stem the retirement of coal plants across the country.

Nominate Industry Leaders for Gala Awards

Nominations are now open for the awards that will be handed out at this year’s Michigan Energy Innovators Gala taking place on Wednesday, November 14 from 5:00 to 9:00 pm at the Kellogg Center in East Lansing.

Awards will be presented in six categories:

  • Project of the Year (new category this year!)
  • Business of the Year
  • Emerging Business of the Year
  • Employer of the Year
  • Public Official of the Year
  • Energy Innovators Hall of Fame

Only Michigan EIBC members and gala sponsors may make nominations/self-nominate. Nominations will be accepted until 5:00 pm on Friday, August 31, 2018 and should be emailed to

Sponsorship opportunities are also available! Sponsors should contact Nicole Forward at

Registration is also open for the gala. If you’d like to purchase an individual ticket, please follow this link.

Sponsor opportunities, a tentative program, the nomination form, and RSVP link can all be found on our website.

Michigan Energy Stories

  • A mid-Michigan county approves new regulations for zoning utility-scale solar projects.
  • Untraceable “dark money” was a major source of influence in the Michigan primaries on August 7 including in the State Rep. Gary Glenn’s race for Senate.
  • Ford says slow and steady will win the self-driving race.
  • The federal government’s top pipeline regulator says Line 5 in the Straits of Mackinac has a low risk of failure.
  • Tribal members from around the Great Lakes, many of whom were at Standing Rock, intend to camp at a site in northern Michigan until Line 5 is shut down.
  • The top federal air pollution official faces backlash from some EPA employees over potentially undermining enforcement against a DTE Energy coal plant in Michigan.
  • The Michigan attorney general’s office says a trash incinerator in Detroit is not doing enough to control odors from the facility.
  • Automotive suppliers in western Michigan see greater demand for electric vehicle components from major automakers.
  • Gov. Snyder toured construction progress at a new UMERC power project in Negaunee Township.
  • Developers plan a wind project east of Muskegon that would produce at least 100 MW of power.


National Energy Stories

Michigan Energy Events
Hosted in Novi, AV18 or AV Autonomous Vehicles Detroit will bring together the leading engineers, innovators, and executives driving the future of autonomy August 20-22.

Hosted in Novi, Michigan September 11-13, The Battery Show North America will bring together more than 8,000 engineers and executives and more than 600 leading suppliers across the advanced battery supply chain. The conference will cover advanced battery technologies, electric and hybrid vehicle technology, and critical power technologies. Learn more and register here.

The Annual Meeting for the National Association of State Energy Offices (NASEO) will be hosted in Detroit September 23-26. The event will focus on integrating electric vehicles, buildings, and the grid for greater efficiency, intelligence, resiliency, and mobility. Learn more and register here.

The University of Michigan’s Energy Club at Ross (ECR) proudly presents the 2018 Energy Conference. This year’s theme is “Disruptive Futures in Energy Technology” where the focus will be on how disruptive technologies and innovative business models are rapidly shaping the future of energy. The event is on September 28 at the Ross School of Business, 701 Tappan Street, Ann Arbor, MI 48109, Colloquium (6th Floor)

MSU IPU invites you to the 60th Annual Regulatory Studies Program’s 13th Advanced Regulatory Studies Program: Ratemaking, Accounting, Finance, and Evaluation. The event will provide intensive, interactive, and technical workshops for experienced professionals in the regulatory policy community. It will take place October 1-5 in East Lansing.

Michigan EIBC will host a members-only election recap on Friday, November 9. Watch your inboxes for registration details.

Michigan EIBC’s Annual Energy Innovator’s Gala is scheduled for Wednesday, November 14, in Lansing. Nominations will be accepted until 5:00 pm on Friday, August 31, 2018 and should be emailed to mieibc@mieibc.orgSponsorship opportunities are available and interested sponsors should contact Nicole Forward at For more information on the Gala and to register, please check out the website.

IEI will host a Corporate Purchasers Lunch & Learn at the House Office Building in Lansing on December 5. This event will be open to legislators and legislative staff, as well as Michigan EIBC members. Watch your inboxes for registration details.

National Energy Events   
The 2018 Veteran’s Energy Seminar Series is scheduled for San Diego (8/18)Chicago (8/30), and Boston (9/27). If you are interested in speaking or sponsoring an event, please visit or

The Solar Energy Industries Association (SEIA) and Smart Electric Power Alliance (SEPA) invite you to Solar Power International, September 24-27, in Anaheim, California. Registration opens in spring of 2018 here.
PACENation Regional Ohio Conference on Property Assessed Clean Energy will be on September 26 in Columbus, Ohio. Register here.
Join 500+ attendees October 18-19 in Vermont for REVitalize: Transforming Energy Further, Fast, Together with keynote speakers Katherine Hamilton, chair of 38 North Solutions, and Gordan Van Welie, president and CEO of ISO New England.

Attend the 2018 ACEEE Rural Energy Conference on October 22 in Atlanta, Georgia. Register here.
MSU IPU invites you to the 60th Annual Regulatory Studies Program’s 46th Eastern NARUC Utility Rate School. The event provides comprehensive hands-on training on the basics of the public utility ratemaking process and is sponsored by the NARUC Committee on Water and featuring group work on a mock water utility rate case. It will take place October 22-26 in Clearwater Beach, Florida.

Join 20,000 energy professionals at the Energy Storage North America Solar+Storage Summit November 6-8 in Pasadena, California. Register here.
The Solar Energy Industries Association (SEIA) and Smart Electric Power Alliance (SEPA) invite you to Solar Power Midwest in Chicago on November 14-15.

You’re invited to Facing Race, a conference taking place in Detroit November 8-10. The conference will include several components related to energy democracy, helping cities and states to implement their new energy programs in a way that is racially equitable. For more information, please click here.

Announcements and Opportunities
The Michigan Energy Office (MEO) has announced a pilot program that will offer matching funds to eligible Michigan businesses to develop innovative energy efficiency and renewable energy technologies.

ARPA-E Announces Funding Opportunity to Support Upcoming Grid Optimization (GO) Competition. Full applications due Sept. 7