SB 438 Summary

• Renamed the 2008 clean energy act to the "clean and renewable energy and energy waste reduction act" and established a goal for 35% of Michigan's electric needs to be met through renewable energy and energy waste reduction by 2025.

• Modified renewable energy credit standards requiring electric providers to achieve 12.5% renewable energy credits by 2019-2020 and 15% by 2021, with monthly retail rate impacts capped at $3.00 for residential customers, $16.58 for commercial secondary, and $187.50 for commercial primary/industrial customers.

• Replaced "energy optimization" requirements with "energy waste reduction" programs requiring electric providers to achieve 1.0% annual energy savings through 2021 and allowing cost recovery through customer charges and independent program administrators.

• Established a distributed generation program allowing customers with systems up to 150 kilowatts to interconnect and participate in net metering, with true net metering for systems 20 kilowatts or less and modified net metering for larger systems, subject to 1% of utility peak load caps.

• Created residential energy improvement programs allowing providers to finance energy projects through utility bill charges, with loan terms not exceeding 180 months or the useful life of improvements, whichever is shorter.