SB 583, As Concurred Senate

SB-0583, As Passed Senate, December 14, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 583

A bill to amend 2002 PA 593, entitled

"Michigan next energy authority act,"

by amending section 2 (MCL 207.822).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2. As used in this act:

(a) "Advanced battery cell" means a rechargeable battery cell

with a specific energy of not less than 80 watt hours per kilogram.

(b) "Alternative energy marine propulsion system" means an

onboard propulsion system or detachable outboard propulsion system

for a watercraft that is powered by ~~a fuel cell energy system,~~

~~photovoltaic energy system, or advanced battery cell energy system~~

an alternative energy system and that is the singular propulsion

system for the watercraft. Alternative energy marine propulsion

system does not include battery powered motors designed to assist

in the propulsion of the watercraft during fishing or other

recreational use.

generation or release of energy from 1 or any combination of the

following types of energy systems:

(i) A fuel cell energy system.

(ii) A photovoltaic energy system.

(iii) A solar-thermal energy system.

(iv) A wind energy system.

(v) A CHP energy system.

(vi) A microturbine energy system.

(vii) A miniturbine energy system.

(viii) A Stirling cycle energy system.

(ix) A battery cell energy system.

(x) A clean fuel energy system.

(xi) An electricity storage system.

(xii) A biomass energy system.

(xiii) A thermoelectric energy system.

(d) "Alternative energy technology" means equipment, component

parts, materials, electronic devices, testing equipment, and

related systems that are ~~solely related to~~ specifically designed,

specifically fabricated, and used primarily for 1 or more of the

following:

(i~~) The storage or generation of hydrogen for use in an~~

~~alternative energy system.~~

(i) The storage, generation, reformation, or distribution of

clean fuels integrated within an alternative energy system or

alternative energy vehicle, not including an anaerobic digester

energy system or a hydroelectric energy system, for use within the

alternative energy system or alternative energy vehicle.

(ii) The process of generating and putting into a usable form

the energy generated by an alternative energy system. Alternative

energy technology does not include those component parts of an

alternative energy system that are required regardless of the

energy source.

(iii) A microgrid. As used in this subparagraph, "microgrid"

means the lines, wires, fuel lines and fuel reformers, and controls

to connect 2 or more alternative energy systems.

(iv) Research and development of an alternative energy vehicle.

(v) Research, development, and manufacturing of an alternative

energy system.

(vi) Research, development, and manufacturing of an anaerobic

digester energy system.

(vii) Research, development, and manufacturing of a

hydroelectric energy system.

(e) "Alternative energy technology business" means a business

engaged solely in the research, development, or manufacturing of

alternative energy technology.

(f) "Alternative energy vehicle" means a motor vehicle

manufactured by an original equipment manufacturer that fully

warrants and certifies that the motor vehicle meets federal motor

vehicle safety standards for its class of vehicles as defined by

the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923, and

certifies that the motor vehicle meets local emissions standards,

that is propelled by an alternative energy system. Alternative

energy vehicle includes the following:

(i) An alternative fueled vehicle. As used in this

subparagraph, "alternative fueled vehicle" means a motor vehicle

that can only be powered by a clean fuel energy system and can only

be fueled by a clean fuel.

(ii) A fuel cell vehicle. As used in this subparagraph, "fuel

cell vehicle" means a motor vehicle powered solely by a fuel cell

energy system.

(iii) An electric vehicle. As used in this subparagraph,

"electric vehicle" means a motor vehicle powered solely by a

battery cell energy system.

(iv) A hybrid vehicle. As used in this subparagraph, "hybrid

vehicle" means a motor vehicle that can only be powered by 2 an

internal combustion engine and 1 or more alternative energy

systems.

(v) A solar vehicle. As used in this subparagraph, "solar

vehicle" means a motor vehicle powered solely by a photovoltaic

energy system.

(vi) A hybrid electric vehicle. As used in this subparagraph,

"hybrid electric vehicle" means a motor vehicle powered by an

integrated propulsion system consisting of an electric motor and

combustion engine. Hybrid electric vehicle does not include a

retrofitted conventional diesel or gasoline engine. A hybrid

electric vehicle obtains the power necessary to propel the motor

vehicle from a combustion engine and 1 of the following:

(A) A battery cell energy system.

(B) A fuel cell energy system.

(vii) A hydraulic hybrid vehicle. As used in this subparagraph,

"hydraulic hybrid vehicle" means a motor vehicle powered by a

regenerative hydraulic drive system or powered by an internal

combustion engine assisted by a regenerative hydraulic drive

system.

(g) "Alternative energy zone" means a renaissance zone

designated as an alternative energy zone by the board of the

Michigan strategic fund under section 8a of the Michigan

renaissance zone act, 1996 PA 376, MCL 125.2688a.

(h) "Anaerobic digester energy system" means a device or

system of devices for optimizing the anaerobic digestion of biomass

for the purpose of recovering biofuel for energy production.

(i) ~~(h)~~ "Authority" means the Michigan next energy authority

created under section 3.

(j) ~~(i)~~ "Battery cell" means a closed electrochemical system

that converts chemical energy from oxidation and reduction

reactions directly into electric energy without combustion and

without external fuel and consists of an anode, a cathode, and an

electrolyte.

(k) ~~(j)~~ "Battery cell energy system" means 1 or more battery

cells and an inverter or other power conditioning unit used to

perform 1 or more of the following functions:

(i) Propel a motor vehicle or an alternative energy marine

propulsion system.

(ii) Provide electricity that is distributed within a dwelling

or other structure.

(iii) Provide electricity to operate a portable electronic

device including, but not limited to, a laptop computer, a personal

digital assistant, or a cell phone. For purposes of this

subparagraph only, a battery cell energy system shall only use

advanced battery cells.

(l) "Biomass energy system" means a system that generates

energy from a process using residues from wood and paper products

industries, food production and processing, trees and grasses grown

specifically to be used as energy crops, and gaseous fuels produced

from solid biomass, animal wastes, municipal wastes, or landfills.

(m) ~~(k)~~ "Board" means the governing body of an authority

under section 4.

(n) (l) "CHP energy system" means an integrated unit that

generates power and either cools, heats, or controls humidity in a

building or provides heating, drying, or chilling for an industrial

process that includes and is limited to both of the following:

(i) An absorption chiller, a desiccant dehumidifier, or heat

recovery equipment.

(ii) One of the following:

(A) An internal combustion engine, an external combustion

engine, a microturbine, or a miniturbine, fueled solely by a clean

fuel.

(B) A fuel cell energy system.

(o) ~~(m)~~ "Clean fuel" means 1 or more of the following:

(i) Methane.

(ii) Natural gas.

(iii) Methanol neat or methanol blends containing at least 85%

methanol.

(iv) Denatured ethanol neat or ethanol blends containing at

least 85% ethanol.

(v) Compressed natural gas.

(vi) Liquefied natural gas.

(vii) Liquefied petroleum gas.

(viii) Hydrogen.

(ix) Renewable fuels.

(p) ~~(n)~~ "Clean fuel energy system" means a device that is

designed and used solely for the purpose of generating power from a

clean fuel. Clean fuel energy system does not include a

conventional gasoline or diesel fuel engine or a retrofitted

conventional diesel or gasoline engine.

(q) ~~(o)~~ "Department" means the department of management and

budget.

(r) ~~(p)~~ "Electricity storage device" means a device,

including a capacitor, that directly stores electrical energy

without conversion to an intermediary medium.

(s) ~~(q)~~ "Electricity storage system" means 1 or more

electricity storage devices and inverters or other power

conditioning equipment.

(t) ~~(r)~~ "Fuel cell energy system" means 1 or more fuel cells

or fuel cell stacks and an inverter or other power conditioning

unit. A fuel cell energy system may also include a fuel processor.

As used in this subdivision:

(i) "Fuel cell" means an electrochemical device that uses an

external fuel and continuously converts the energy released from

the oxidation of fuel by oxygen directly into electricity without

combustion and consists of an anode, a cathode, and an electrolyte.

(ii) "Fuel cell stack" means an assembly of fuel cells.

(iii) "Fuel processor" means a device that converts a fuel,

including, but not limited to, methanol, natural gas, or gasoline,

into a hydrogen rich gas, without combustion for use in a fuel

cell.

(u) "Hydroelectric energy system" means a system related to

the process of generating or putting into usable form the energy

produced solely from flowing or falling water. The system may

consist of a turbine, generator, alternator, electronic devices, or

other directly related component parts.

(v) ~~(s)~~ "Microturbine energy system" means a system that

generates electricity, composed of a compressor, combustor,

turbine, and generator, fueled solely by a clean fuel with a

capacity of not more than 250 kilowatts. A microturbine energy

system may include an alternator and shall include a recuperator if

the use of the recuperator increases the efficiency of the energy

system.

(w) ~~(t)~~ "Miniturbine energy system" means a system that

generates electricity, composed of a compressor, combustor,

turbine, and generator, fueled solely by a clean fuel with a

capacity of not more than 2 megawatts. A miniturbine energy system

may also include an alternator and a recuperator.

(x) ~~(u)~~ "Person" means an individual, partnership,

corporation, limited liability company, association, governmental

entity, or other legal entity.

(y) ~~(v)~~ "Photovoltaic energy system" means a solar energy

device composed of 1 or more photovoltaic cells or photovoltaic

modules and an inverter or other power conditioning unit. A

photovoltaic system may also include batteries for power storage or

an electricity storage device. As used in this subdivision:

(i) "Photovoltaic cell" means an integrated device consisting

of layers of semiconductor materials and electrical contacts

capable of converting incident light directly into electricity.

(ii) "Photovoltaic module" means an assembly of photovoltaic

cells.

(z) "Regenerative hydraulic drive system" means a system that

captures energy from nonparasitic vehicle sources or energy wasted

by a vehicle's brakes or suspension to be released to directly

assist vehicle propulsion or directly propel the vehicle.

(aa) "Renewable fuels" means 1 or more of the following:

(i) Biodiesel or biodiesel blends containing at least 20%

biodiesel. As used in this subparagraph, "biodiesel" means a diesel

fuel substitute consisting of methyl or ethyl esters produced from

the transesterification of animal or vegetable fats with methanol

or ethanol.

(ii) Biomass. As used in this subparagraph, "biomass" means

wood and paper products industries, food production and processing,

trees and grasses grown specifically to be used as energy crops,

and gaseous fuels produced from solid biomass, animal waste,

municipal wastes, or landfills.

(bb) ~~(w)~~ "Small-scale" means a 1 or more of the following:

(i) A single energy system with a generating capacity of not

more than 2 megawatts or an integrated energy system with a

generating capacity of not more than 10 megawatts.

(ii) A single energy system or an integrated energy system with

any generating capacity that is 1 or more of the following:

(A) A fuel cell energy system.

(B) A photovoltaic energy system.

(cc) ~~(x)~~ "Solar thermal energy system" means an integrated

unit consisting of a sunlight collection device, a system

containing a heat transfer fluid to receive the collected sunlight,

and heat exchangers to transfer the solar energy to a thermal

storage tank to heat or cool spaces or ~~water~~ fluids or to

generate electricity.

(dd) ~~(y)~~ "Stirling cycle energy system" means a closed-

cycle, regenerative heat engine that is fueled solely by a clean

fuel and uses an external combustion process, heat exchangers,

pistons, a regenerator, and a confined working gas, such as

hydrogen or helium, to convert heat into mechanical energy. A

Stirling cycle energy system may also include a generator to

generate electricity.

(ee) "Thermoelectric energy system" means a system that

generates energy by converting thermal energy into electrical

energy using direct heat from a clean fuel energy system or waste

heat from any source. A thermoelectric energy system also includes

an energy system that utilizes alkali metal thermal-to-electric