SB 916 updates Michigan's renewable energy requirements for electric providers by establishing a tiered portfolio standard that increases from 15% by 2029 to 60% by 2035. The bill allows providers to meet these targets through generating renewable energy, purchasing power, or acquiring renewable energy credits, with specific limits on the use of out-of-state credits. It also introduces financial incentives for providers entering into non-affiliate contracts for renewable energy or clean energy storage systems after June 30, 2024, and permits energy waste reduction credits to substitute for up to 10% of renewable energy requirements under certain conditions.
This bill requires electric and natural gas utilities in Michigan to prove they have security measures in place to protect critical infrastructure from cyber and physical threats. Utilities must also maintain a risk-based program to identify and mitigate these risks. If approved by the state commission, utilities can pass the cost of these enhanced security investments onto retail customers through a specific fee. The bill also mandates that sensitive information regarding security vulnerabilities and protective systems remain confidential and exempt from public disclosure.
This bill establishes a temporary gas tax holiday in Michigan, setting the motor fuel tax rate to zero cents per gallon starting immediately. The zero rate will remain in effect until either November 1, 2026, or the nationwide average gas price drops below $3.50, whichever happens first. While the holiday is active, the standard tax rates for gasoline and diesel are suspended, and the bill includes specific reporting requirements for suppliers and end users holding fuel inventory.
Senate Bill 987 amends Michigan's use tax law to maintain the exemption of electricity, natural gas, and home heating fuels from the additional 2% use tax for residential use. This change ensures that households continue to pay only the standard sales tax rate on these essential utilities rather than the higher rate. The bill directly affects Michigan residents by preserving the current tax treatment of residential energy consumption. Introduced by Senator Jonathan Lindsey on May 20, 2026, the legislation is currently under review by the Committee on Government Operations.
This bill requires electric and natural gas utilities in Michigan to use competitive bidding for contracts involving construction, operations, maintenance, or capital improvements. If a utility fails to follow this competitive process, the state commission cannot allow the company to recover the costs associated with that contract. The law also grants ratepayers and bidders the right to sue for damages or injunctive relief if the competitive bidding rules are not followed, with potential penalties of at least $1,000 plus legal fees. Additionally, all bids submitted to these utilities must be treated as public records and made available for inspection and copying.
This bill updates Michigan's rules for electric utilities seeking permission to build major new transmission lines. It requires companies to send detailed, plain-language notices by mail and in local newspapers to all municipalities and landowners near proposed routes, including maps and contact information for public comment. The legislation also grants affected landowners and municipalities full legal standing to participate in the review process and sets a one-year deadline for the state commission to approve or deny applications. Additionally, the bill mandates that if a project is not started within five years of approval, the permit becomes invalid.
This bill requires operators of large-scale solar energy facilities in Michigan, defined as those with 50 megawatts or more of capacity, to implement cybersecurity measures to protect safety-critical systems. The law mandates that these facilities follow a risk-based security program aligned with national standards and report material cyber incidents to state and local authorities within 24 to 72 hours. Operators must also maintain incident response plans for coordinating with emergency responders, while specific security details remain confidential and are exempt from public disclosure. The legislation does not regulate facility siting, create new regulatory oversight, or impose additional costs on local governments, and it allows facilities to use existing staff to meet compliance requirements.
This bill allows electric utilities and other infrastructure providers to build and maintain electronic transmission lines within existing highway rights-of-way without needing separate consent from local governments. It establishes a fee structure for using these spaces, caps permit fees at $1,000 per mile, and requires that any installed lines be underground to avoid increasing road maintenance costs. Additionally, the legislation mandates that the state transportation department share future road plans with utility developers and provide a five-year notice before requiring the relocation of high-voltage transmission lines.
This bill modifies the Michigan Solar Energy Facilities Taxation Act to create a tax exemption for solar projects located in designated HOPE zones. Under the proposed changes, solar facilities in these areas would not be subject to the standard annual tax, which is normally $7,000 per megawatt of capacity. The exemption applies only to the specific tax portion of the fee and is tied to the duration of the HOPE zone designation. The bill also includes a tie-bar provision, meaning it will only become effective if two other related bills are passed by the legislature.
HB 5940 allows electric utilities and other providers to install electronic transmission infrastructure, such as high-voltage power lines, within existing highway rights-of-way without needing separate consent from local governments. The bill establishes specific standards for underground placement to avoid increasing road maintenance costs and introduces a fee structure where utilities pay a one-time permit fee, with revenues dedicated to highway capital and maintenance. Additionally, the legislation creates a coordination process between the state transportation department and utilities to identify suitable routes and includes protections that prevent the state from relocating transmission lines for at least five years once a route is approved.