HB 5143 and HB 5680 are one step closer to the Governor’s desk after the Senate Finance Committee voted the bills to the Senate floor yesterday. Taxes on solar panels are currently assessed inconsistently across the state and this legislation is necessary to avoid the patchwork system of interpretation and enforcement. A contradictory set of policies from the Michigan Tax Tribunal and Michigan Agency for Energy has further complicated and confused the situation. The bill package seeks to solve the problem.

HB 5143 was introduced by Representative Tom Barrett in October 2017. The bill exempts behind-the-meter distributed energy generation systems from real property tax assessment. It applies to fuel cell, photovoltaic, solar-thermal, wind, CHP, microturbine, miniturbine, Stirling cycle, battery cell, clean fuel, and electricity storage systems. This exemption was originally created through 2002 PA 549 authored by Sen. Randy Richardville, but has since expired.

Under HB 5143, those technologies are again exempt from property taxes as long as they are used to generate electricity that is 1) used on-site, 2) used to offset all or a portion of the commercial or industrial energy used on that property, and 3) has a nameplate capacity of no more than 150 kW, and 4) meets the less than $80,000 true cash value metric set forth in a treasury regulation.

HB 5680 adds alternative energy systems to the list of repairs and household upgrades that are not considered when determining the true cash value of a property for assessment purposes, until the property is sold. It does this by adding alternative energy systems to the list of “Eligible Repairs” under the Mathieu-Gast Act (MCL 277.27(2)).

“We are pleased the Senate Finance Committee approved this common sense, bipartisan legislation that clarifies how solar panels impact property taxes,” said Liesl Clark, president of the Michigan Energy Innovation Business Council. “As technology continues to progress, rooftop solar has become an increasingly popular way for families and businesses to reduce electricity costs by generating their own electricity. These bills ensure that we don’t have a confusing patchwork of taxation across the state.”

Earlier this month, Michigan EIBC member company Foresight partnered with Constellation Energy to help furniture-maker Herman Miller procure to 100% renewable energy for the company’s facilities in Spring Lake, Michigan.

“This project will help us meet our sustainability goals — and doesn’t negatively impact our business,” said Gabe Wing, director of Safety and Sustainability at Herman Miller. ”We will continue to reduce our carbon footprint through energy efficiency projects and supporting green energy projects like Harvest II where the market allows.”

The agreement will supply Herman Miller with approximately 25,000 megawatt-hours of wind annually, all sourced from the Harvest II wind project located in Elkton, Michigan.

Michigan companies like Herman Miller are increasingly looking for options to purchase advanced energy solutions to help power their Michigan-based operations. Michigan EIBC and the Institute for Energy Innovation (IEI) are helping to bring information about these trends to policy makers and business leaders. On October 25, Michigan EIBC is hosting an event with the Michigan Chamber of Commerce focused on corporate procurement of renewable energy. And on December 5, IEI is hosting Corporate Purchasers 101, a lunch and learn event for Michigan legislators and staff as well as Michigan EIBC member companies.

This week, Michigan EIBC released a report with recommendations on next steps to promote advanced mobility and transportation electrification in Michigan based on five stakeholder convenings held in 2018.

As the advanced mobility state, the answer to “what’s going on in Michigan?” needs to be that “we’re creating the premiere EV program in the nation,” stated Liesl Eichler Clark, Michigan EIBC president. “As mobility as a service, shared rides, and automated and connected transportation grow, the electrified powertrain is the platform for the transportation future.”

Recognizing the economic opportunity for Michigan as a leader in the burgeoning advanced mobility sector and understanding that automated, connected, and shared vehicles will not hit Michigan roads without wide-scale vehicle electrification, Michigan EIBC convened a series of meetings focused on electric vehicles (EVs) for stakeholders across the advanced mobility space. These convenings included stakeholders from industry, government, nonprofits, and a variety of other actors. The convenings addressed 1) utility pilot programs and the Volkswagen settlement; 2) customer education and awareness; 3) long-dwell and DC fast charging infrastructure; 4) fleet electrification; and 5) rate design.

Approximately 140 stakeholders from 74 organizations participated in the five EV convenings. Given the array of topics, some stakeholders attended multiple convenings or all convenings, while others participated on only one topic. The meetings were sponsored by Advanced Energy Economy, DTE Energy, Consumers Energy, the Michigan Agency for Energy, CLEAResult, the Ecology Center, and Lyft.

As stated in the report, “the convergence of the energy and mobility sectors represents a disruptive inflection point for transportation and electricity that – if harnessed – can give the state of Michigan an advantage by utilizing the state’s unique strength in the battery industry, electrified power train engineering, advanced energy industry, and – not least – automotive industry.”

Also this week, a joint announcement from Consumers Energy and General Motors underscored the convergence highlighted in the report. At a press conference with Michigan EIBC President Liesl Eichler Clark, Consumers Energy and General Motors announced a pilot program to test smart charging for electric vehicles. Consumers Energy also announced that it would be buying or leasing electric vehicles instead of purchasing new sedans that rely on gasoline and highlighted its plans to invest $7.5 million in electric vehicle charging infrastructure over the next three years.

“It’s important to see Michigan companies like Consumers Energy and General Motors take such significant steps to promote electric vehicles here in our state,” said Liesl Clark, president of the Michigan Energy Innovation Business Council. “We need to drive Michigan’s advanced mobility industry to build a road to bright future for Michigan’s economy and environment.”

• A new study says that the Metro Detroit region ranks 11th in the top 50 U.S. metro regions for clean-energy jobs.
• The Grand Haven Board of Light & Power has its sights on supplying Grand Haven residents with energy from solar power.
• Last week, Michigan State was awarded $2 million to reimagine the US power grid, including considering energy storage.
• Heritage Sustainable Energy Company celebrated the completion of a one megawatt solar array along US-31 South in Green Lake Township in Grand Traverse County.
• Upper Michigan Energy Resources Corp. officials invited the public for a tour of their new facility in Negaunee on Wednesday.
• Renewable energy and the Huron County Master Plan dominated discussion this week at the Huron County Board of Commissioners meeting. The board received a $24,500 bid this week from an acoustics company to do sound testing of wind turbines.
• Two Michigan state representatives introduced bills to help grease the wheels for clean mobility infrastructure.
• The Ludington Pumped Storage Plant along Lake Michigan is undergoing significant upgrades as Michigan utilities expect it to play a bigger role on the grid.
• The Summit Lake Wind Project in the Upper Peninsula is expected to produce 130 megawatts of renewable energy, which could translate into renewable energy credits for the project owner.
• Mcity released a case study outlining the key learnings from its on-campus driverless shuttle research project.
• Consumers Energy may have to withdraw a long-term plan to retire coal and add solar amid a dispute over PURPA contracts.
• Consumers Energy and General Motors held a press conference yesterday to announce a collaboration on electric vehicles. Michigan EIBC President Liesl Eichler Clark participated in the event.
• At a public hearing in Dearborn, speakers ranging from auto executives to environmentalists criticized the Trump administration’s plan to roll back fuel economy standards.
• The city of Detroit’s first Office of Sustainability is zeroing in on an action plan to impact businesses and residents by investing in energy-efficient infrastructure.