Michigan House Democrats released a legislative proposal intended to both stimulate the use of renewable energy sources in Michigan and grow the alternative energy industry.
NextEnergy's Mark Beyer says the most significant component of the proposal is the establishment of Renewable Portfolio Standards for the state requiring 10% of Michigan's energy production to come from renewable sources like solar, wind, hydroelectric and biomass by 2015 and 25% by 2025. A NextEnergy report about RPS that was submitted to the Michigan Department of Environmental Quality explored the effects of such a program on the state's economy and found it to be extraordinarily beneficial.
Beyer explains, "It would put people to work and decrease the cost of inputting energy. RPS is an attractive lure to [alternative energy companies] from out-of-state and out-of-the nation."
Beyer points out that 23 states and the District of Columbia already have RPS in place and one, Pennsylvania, has already attracted investment from a Spanish wind turbine manufacturer. "This is despite our manufacturing prowess! But RPS is very symbolic. It shows that we are dedicated to this industry. We won't be taken seriously by big international wind turbine manufacturers until we have RPS in place."
Other aspects of the plan, which is still being finalized, include alternative energy renaissance tax relief zones, the tightening up of energy conservation codes, sales tax exemption for the purchase of energy efficient home appliances, tax credits for solar power equipment purchase and an statewide reduction of 1% of energy consumption annually. The plan also will look to encourage worker training in renewable energy technologies at the state's community colleges.
Although alternative energy may not yet be fully on the radar of the mainstream, Beyer sees that day coming quickly. "It's showing up in more headlines, more stories," he says. "One day, the $5 gallon of gas will be on the cover of Time magazine."
Beyers is optimistic about the ultimate passage of the bill, saying "It's a bi-partisan issue."
Source: Mark Beyer, NextEnergy
Writer: Kelli B. Kavanaugh
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