In October 2008, the Michigan legislature enacted a series of bills addressing several components of the state’s energy markets. Among the enacted laws was Public Act (P.A.) 295, which renewed and revised the state’s commitment to energy efficiency in state facilities that had previously been addressed under several Executive Directives. The new law also created a state renewables portfolio standard (RPS), revised the state’s net metering law, and provided for the formation of the Wind Energy Resource Zone Board to investigate state wind resources, electricity transmission and siting issues.

In the area of state government energy efficiency, P.A. 295 sets a goal of reducing state government grid-based energy purchases 25% by 2015 compared to a 2002 baseline. As of July 2010, Michigan had achieved a 22% reduction in energy use in state facilities. The law directs the Department of Management and Budget (DMB), in consultation with the State Energy Office, to perform and oversee several tasks related to achieving this goal. The responsibilities of the DMB under P.A. 295 are as follows:

- Establish an energy analysis program to evaluate each building owned or leased by the state for ways of reducing energy use. The analyses must take place at least once every five years.

- Examine the costs and benefits of using the LEED green building standard when constructing or remodeling a state building, and in leasing or remodeling leased buildings.

- Ensure that energy-efficient equipment is purchased and used in state operations whenever possible, specifically including cost-effective lighting technologies and geothermal heat pumps.

- Assist each state department in naming an Energy Reduction Coordinator to work on reducing energy use.

- Implement a program to educate state employees on ways to reduce energy use.

- Reduce state government energy use during peak summer use periods beginning in 2010.

- Create a web-based tracking system for state energy efficiency and conservation projects.

Although specific details are not identified in the law, the 25% by 2015 grid-based energy reduction goal may be met with the use of on-site energy generation such as combined heat and power (CHP) or renewable energy generation in addition to energy efficiency improvements, operational changes, or other measures.

History

In April 2005, Michigan’s governor signed Executive Directive No. 2005-4 establishing an energy savings target for all state buildings managed by the Department of Management and Budget (DMB) or other departments within the jurisdiction of the executive branch of state government. The directive set a target of a 10% reduction in energy use by the end of 2008 and a 20% reduction in grid-based energy purchases by the end of 2015, as compared with energy use and purchases in the fiscal year ending September 30, 2002. The directive also contained provisions requiring state agencies to purchase energy-efficient products or equipment and use green building practices in new construction.

In January 2007, Executive Directive 2007-06 required the DMB to develop a plan to further reduce energy use by departments and agencies within the executive branch by at least 10% as compared to energy use during the fiscal year ending September 30, 2006. This additional requirement did not affect the various other requirements and goals authorized under Executive Directive 2005-04.

Executive Directive No. 2007-22, signed in November 2007, rescinded the previous directives in their entirety but maintained the energy use reduction goal, the grid-based energy purchases reduction goal, and energy-efficient product procurement provisions described above. Green building guidelines for new state construction were retained in a slightly modified form. Thus far grid-based energy purchases by state agencies have been reduced by 23% compared to 2002, exceeding 20% by 2015 goal.

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