LANSING – Renewable energy legislation passed one house of the Michigan Legislature unanimously on Thursday, but it wasn’t the wide-sweeping standard Gov. Jennifer Granholm and environmental groups have called for. The Senate approved SB 1000 on a 38-0 vote.

Supporters of the legislation that would require state government to purchase increasing levels of renewable energy said it was the first step towards a larger package and on its own would help stimulate the renewable energy industry in Michigan.

Also approved unanimously were bills creating tax breaks for using qualified energy programs and requiring electric utilities to offer green energy programs.

Senate Republicans said their bills were superior to measures under consideration in the House because they would promote development of renewable energy without adding costs to ratepayers. Critics have charged that the more extensive renewable energy portfolio standards under consideration in the House could cost consumers as much as $8 billion over the long-term.

But Sen. Liz Brater (D-Ann Arbor) said critics of SB 1000 derided it, asking how little was the state willing to do on the issue of renewable energy. Sen. Patricia Birkholz (R-Saugatuck) said the measure was a first step towards more legislation, but that it would have a positive effect on developing the renewable energy industry by assuring there is a market for its generated power.

Under the bill, 3 percent of the energy purchased by the state in 2009 would have to come from renewable resources. That would increase to 10 percent in 2010, 20 percent in 2020 and 25 percent in 2025.

However, the state would only be required to purchase the power if its cost was within 5 percent of the cost of non-renewable energy.

Also approved was SB 1041 that requires all electricity providers to offer customers the ability to purchase power through renewable resources. However the companies would also have to report on the different costs of renewable and non-renewable energy on a customer’s bill and tell them that a tax credit is available.

SB 1040 would create an income tax credit that would allow an individual to claim up to $200 a year to offset the cost of green energy. Since some 20,000 homes in the state now participate in the programs that are available, the proposal could cost the state revenues about $4 million a year.

The measures drew praise, though some of it muted. The MI Energy Future group, which includes businesses, environmental and agricultural groups calling for a 10 percent renewable standard by 2015, called the bills a signal that “renewable energy is at the central pillar of our policy going forward.”

Marty Kushler of the American Council for an Energy Efficient Economy said the measures were “fine, as far as it goes.” But the bills were more symbolic than anything else because it would involve less than 1 percent of the state’s total energy usage.

But David Waymire, speaking for the Customer Choice Coalition, called SB 1000 the “perfect bill,” because it is simple and easily understandable. “It shows exactly how good policy can work when leadership lets it,” he said.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

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