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New legislation seeks to expand Michigan clean energy programs, enhance net metering, and regulate wind energy zones statewide.
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Michigan Advances Bill to Expand Renewable Energy and Reduce Waste
LANSING, Mich. — A new Michigan House 4028 bill aims to expand clean energy programs, regulate wind and solar energy development, and improve net metering for customers who generate their own electricity.
The bill, House Bill 4028, introduced on January 23, 2025, amends Michigan’s Clean and Renewable Energy and Energy Waste Reduction Act (PA 295 of 2008). The legislation, currently under review by the House Committee on Energy, seeks to strengthen renewable energy requirements and ensure that cost savings from these programs are passed back to consumers.
What House Bill 4028 Proposes
If enacted, HB 4028 would:
- Require electric providers to fund and recover costs for renewable energy and clean energy programs.
- Expand customer net metering, allowing residents to generate and sell back more solar and wind power to the grid.
- Mandate state agencies to reduce energy waste and improve efficiency in public buildings.
- Create a wind energy resource zone board to oversee new wind energy projects.
- Accelerate the permitting process for wind and solar energy developments.
- Ensure that savings from energy efficiency programs are returned to customers.
Supporters say the bill bolsters Michigan’s transition to clean energy while providing transparency on energy savings for consumers.
Impact of Repealing Part 8 (MCL 460.1221 – 460.1232) under HB 4028
House Bill 4028 proposes to repeal Part 8 of the Clean and Renewable Energy and Energy Waste Reduction Act (Public Act 295 of 2008), which deals with wind, solar, and storage certification?. Below is a breakdown of what Part 8 covers and how its removal might affect Michigan’s energy policies.
What Part 8 (MCL 460.1221 – 460.1232) Covers
1. Certification Requirements for Energy Facilities (MCL 460.1222)
- Before construction, developers of wind, solar, or storage facilities had to apply for a certificate from the Michigan Public Service Commission (MPSC).
- This process ensured public input and compliance with state regulations.
2. Public Hearings and Local Authority (MCL 460.1223 – 460.1224)
- Companies needed to hold public meetings and submit site plans for approval.
- Affected local governments had a role in the decision-making process.
3. Community Benefits and Local Compensation (MCL 460.1227)
- Required community benefits agreements, ensuring local communities received economic or environmental benefits from energy projects.
- Established a fund for local governments impacted by new energy projects.
4. Review and Appeals Process (MCL 460.1229 – 460.1230)
- Allowed local governments and other parties to challenge project approvals.
- Defined MPSC’s powers regarding site approvals.
5. Zoning and Eminent Domain (MCL 460.1231)
- Prevented local governments from banning renewable energy projects outright.
- Did NOT grant energy companies eminent domain powers for taking private property?.
Effects of Repealing Part 8
- Removal of State-Level Certification Process
- Wind, solar, and energy storage projects would no longer require MPSC approval.
- Energy developers could bypass state regulations, potentially reducing delays but increasing local disputes.
- Weakened Local Oversight and Public Input
- Public meetings and hearings may no longer be required before construction.
- Communities may have less say in where energy projects are built.
- Loss of Community Compensation
- The repeal eliminates the local compensation fund, meaning communities near energy projects may no longer receive direct financial benefits.
- Potential for More Local Energy Bans
- Without state oversight, local governments could impose stricter regulations or bans on renewable energy projects.
- This could slow Michigan’s transition to renewable energy.
Net Effect
By repealing Part 8, HB 4028 would eliminate the certification process for wind, solar, and storage facilities, reduce local input, and potentially make it harder to develop renewable energy projects in Michigan. While this may streamline development for energy companies, it removes protections for local communities and weakens oversight of new energy projects.
Will the Change Boost Renewable Michigan Clean Energy Infrastructure
Michigan has seen a steady increase in solar and wind energy projects, but advocates argue that outdated regulations and inconsistent local policies have slowed progress.
HB 4028 proposes a centralized permitting process to prevent local roadblocks that have previously hindered renewable energy development. The bill also clarifies regulations for large-scale wind and solar farms, ensuring smoother project approvals.
Rep. Greg Alexander, one of the bill’s sponsors, represents the 98th district in Michigan’s Thumb region, which includes residents in portions of Lapeer, Sanilac, and Tuscola counties and Huron County. This area hosts the largest installation of industrial wind turbines in the state.
Net Metering Reforms for Solar and Wind Customers
The bill seeks to strengthen net metering, which allows households and businesses with solar panels or wind turbines to sell excess energy back to the grid.
- Under current law, utility companies limit the amount of customer-generated electricity they buy back.
- HB 4028 eliminates restrictive caps on net metering, making it easier for homeowners and businesses to benefit financially from their clean energy investments.
How Net Metering Reforms Can Improve ROI for Home Solar and Reduce Tax Subsidies
Net metering reforms, such as those proposed in Michigan’s House Bill 4028, aim to enhance the financial returns (ROI) of home solar installations while reducing reliance on government tax subsidies. By allowing homeowners to sell excess electricity back to the grid at fairer rates, net metering improves the economics of solar power, making it more accessible without the need for significant tax incentives.
Michigan Clean Energy Overhaul Hinges on Zoning Reform Bill
A legislative push to expand renewable energy in Michigan will not move forward unless lawmakers also pass a zoning reform bill that would streamline local approvals for clean energy projects.
House Bill 4027, introduced on January 23, 2025, seeks to amend the Michigan Zoning Enabling Act to remove local barriers to wind and solar energy projects, ensuring smoother permitting processes. The bill is a necessary companion to House Bill 4028, which strengthens net metering, clean energy programs, and grid modernization.
Both bills are currently under review by the House Energy Committee and must pass together for Michigan’s renewable energy expansion to take effect.
Challenges and Opposition of the Michigan Clean Energy Bill
While the bill has broad support among clean energy advocates and consumer groups, some utilities and local governments oppose key provisions.
- Utility companies oppose changes to net metering, arguing that it could shift costs to non-solar customers.
- Some rural counties push back against expanded wind and solar projects, citing concerns over land use and aesthetics.
- Energy industry groups argue that mandated cost recoveries for energy efficiency programs could drive up rates.
The Michigan Public Service Commission is reviewing potential impacts on energy costs, infrastructure, and grid reliability.
Michigan Clean Energy Bill Sponsors
Introduced by Reps. Alexander, Bruck, Bohnak, Schriver, Kelly, Pavlov, Markkanen, Posthumus, Woolford, Wozniak, Beson, Prestin, Slagh, Kunse, Mueller, Green, Aragona, Borton, Paquette, DeSana, Cavitt, Martin, Fox, Outman, Frisbie, Steele, Rigas, Bierlein, Hoadley, Neyer, Fairbairn, Wortz, Harris, St. Germaine, DeBoyer, DeBoer, Lightner, Tisdel, VanderWall, Smit, Wendzel, Meerman, VanWoerkom, Johnsen, Schmaltz, Roth,
BeGole, Maddock, Greene and Jenkins-Arno.
What’s Next for House Bill 4028?
The bill must pass through the House Energy Committee before advancing to the full Michigan House and Senate. A companion bill, House Bill 4027, must also pass for HB 4028 to take effect.
If signed into law, HB 4028 would mark a significant shift toward a more sustainable and energy-efficient Michigan.
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