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HB 4283

Energy: alternative sources; electricity generated from RICE generators; authorize use of to meet renewable and clean energy standards. Amends secs. 28, 29 & 32 of 2008 PA 295 (MCL 460.1028 et seq.) & adds sec. 34.

2025-2026 Regular Session Introduced by Timmy Beson and 10 co-sponsors

The bill allows certain RICE-generated electricity used to retire UP coal plants before Feb 27, 2024 to count toward Renewable Energy Credit and clean energy standards.

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS
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Bill Summary · HB 4283

Summary — HB 4283 (Clean and renewable energy and energy waste reduction act amendments)

Bill number: HB 4283
Sponsor: Rep. Dave Prestin
Introduced: March 10, 2025
Status: Passed House May 13, 2025 (immediate effect requested); referred to Committee on Government Operations (Senate)
Statutory changes: Amends sections 28, 29, and 32 of 2008 PA 295 (MCL 460.1028, 460.1029, 460.1032) and adds section 34.

Main purpose

HB 4283 allows electricity generated by certain reciprocating internal combustion engines (RICE) — specifically those placed in service to facilitate the retirement of coal‑fired generation in Michigan’s Upper Peninsula before February 27, 2024 — to be counted toward compliance with the Clean and Renewable Energy and Energy Waste Reduction Act’s renewable energy credit (REC) standard and clean energy standard.

Key provisions

  • Reaffirms REC portfolio targets already in statute:
    • 15% through 2029
    • 50% for 2030–2034
    • 60% in 2035 and each year thereafter
  • Maintains the methods for calculating an electric provider’s REC portfolio (single‑year or 3‑year average weather‑normalized MWh), and special calculations for cooperative or multistate providers (including subtraction for nuclear energy obtained from in‑state systems contracted on or before Jan. 1, 2024).
  • Explicitly permits qualifying RICE‑generated electricity (installed to enable retirement of Upper Peninsula coal units prior to Feb. 27, 2024) to be used to comply with both the REC standard and clean energy standard (new sec. 34).
  • Retains current compliance mechanisms and limits:
    • RECs purchased without associated energy must be produced within the provider’s RTO territory and (except for municipal utilities) generally limited to 5% of annual RECs; those RECs not subject to section 29 and disallowed after 2035.
    • Energy waste reduction credits may be substituted for RECs (subject to MPSC approval) up to 10% of the REC standard.
  • Adds/keeps an annual financial incentive mechanism for regulated providers entering PPAs or third‑party contracts for renewable, storage, or clean energy systems (incentive = contract payments × pre‑tax weighted average permanent capital cost, updated each rate case).

Who is affected

  • Electric providers (investor‑owned, cooperative, municipal, multistate) in Michigan — particularly those serving the Upper Peninsula.
  • The Michigan Public Service Commission (MPSC) for contract review/approval and incentive calculations.
  • REC market participants and compliance planners who manage portfolio strategy and procurement.

Procedural history / timeline

  • Introduced March 10, 2025 (referred to Committee on Energy).
  • Committee hearings and substitute consideration April 14 and April 30, 2025.
  • Committee substitute(s) considered and reported favorably; substitute (H‑3) adopted.
  • Passed House May 7 & May 13, 2025 (Roll Call on final passage: 83 yeas, 26 nays); transmitted to Senate and referred to Committee on Government Operations.

Fiscal impact

House Fiscal Agency analysis: no fiscal impact on the MPSC and unlikely to directly affect costs/revenues for the Department of Environment, Great Lakes, and Energy or local governments.

Notes

  • The bill’s RICE eligibility is narrowly targeted to units placed in service for retiring Upper Peninsula coal plants before Feb. 27, 2024 (retroactive qualifier).
  • Final legal effect depends on Senate action and the Governor’s approval.

Compiled from official sources — confirm details with the bill’s official record.

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