September 20, 2007, Introduced by Senators HUNTER and GLEASON and referred to the Committee on Energy Policy and Public Utilities.
A bill to regulate the construction of certain electric
generation facilities; to provide for the powers and duties of
certain state and local governmental officers and entities; and to
require the promulgation of rules.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"electric integrated resources planning and power plant
certification act".
Sec. 2. As used in this act:
(a) "Alternative electric supplier" means that term as defined
in section 10g of 1939 PA 3, MCL 460.10g.
(b) "Certificate" means a certificate of need issued for an
electric generation facility under this act.
(c) "Commission" means the Michigan public service commission.
(d) "Construction" means any substantial action taken on an
electric generation facility constituting placement or erection of
the foundations or structures supporting an electric generation
facility. Construction does not include preconstruction activity or
routine maintenance of an existing electric generation facility.
(e) "Electric utility" means a person, partnership,
corporation, association, or other legal entity whose generation or
transmission of electricity the commission regulates under 1939 PA
3, MCL 460.1 to 460.10cc. Electric utility does not include a
municipal utility.
(f) "Municipality" means a city, township, or village.
(g) "Preconstruction activity" means any activity on a
proposed electric generation facility conducted before construction
begins. Preconstruction activity includes surveys, measurements,
examinations, soundings, borings, sample-taking, or other testing
procedures, photography, appraisal, or tests of soil, groundwater,
structures, or other materials in or on the real property for
contamination.
Sec. 3. (1) An electric utility that seeks to construct an
electric generation facility to serve its customers may apply to
the commission for a certificate. The commission shall not issue a
certificate unless a requesting electric utility files an
integrated resource plan and demonstrates a need for the generation
facility. If the commission issues a certificate to an electric
utility, the need for the generation facility shall not be used as
the basis for challenging the cost recovery of the electric
generation facility in subsequent rate proceedings.
(2) Before applying for a certificate, a utility shall
schedule and hold a public meeting in the municipality in which the
generation facility has been proposed. A public meeting held in a
township satisfies the requirement that a public meeting be held in
each affected village located within the township.
Sec. 4. (1) Upon applying for a certificate, an electric
utility shall give public notice in the manner and form the
commission prescribes of an opportunity to comment on the
application. Notice shall be published in a newspaper of general
circulation in the utility's service area within a reasonable time
period after an application is provided to the commission and shall
be sent to each affected municipality and each affected landowner
within 1,000 feet of the proposed generation facility. The notice
shall be written in plain, nontechnical, and easily understood
terms and shall contain a title that includes the name of the
electric utility and the words "NOTICE OF INTENT TO CONSTRUCT AN
ELECTRIC GENERATION FACILITY".
(2) The commission shall conduct a proceeding on the
application as a contested case under chapter 4 of the
administrative procedures act of 1969, 1969 PA 306, MCL 24.271 to
24.287. Upon receiving an application for a certificate, each
affected municipality and each affected landowner shall be granted
full intervenor status as of right in commission proceedings
concerning the proposed generation facility.
(3) The commission shall grant or deny the application for a
certificate not later than 270 days after the application's filing
date. The commission may condition its approval upon the
applicant's taking additional action to ensure the public
convenience, health, and safety and reliability of the proposed
electric generation facility.
(4) The commission shall grant the application and issue a
certificate if it determines all of the following:
(a) The electric utility has demonstrated a need for the
generation facility through its integrated resource plan filing.
(b) The proposed location is feasible and reasonable.
(c) The proposed generation facility does not present an
unreasonable threat to public health or safety.
(d) The electric utility can finance the generation facility
on reasonable terms.
(5) A certificate issued under this section shall identify the
generation facility's proposed location and shall contain an
estimated cost for the generation facility.
(6) If construction of a proposed generation facility is not
begun within 5 years of the date that a certificate is granted, the
certificate is invalid and a new certificate shall be required for
the proposed generation facility.
Sec. 5. A utility that receives a certificate for an electric
generation facility shall competitively bid the engineering,
procurement, and construction portion of the generation facility.
Sec. 6. If the commission grants a certificate under this act,
that certificate shall take precedence over a conflicting local
ordinance, law, rule, regulation, policy, or practice that
prohibits or regulates the location or construction of a generation
facility for which the commission has issued a certificate.
Sec. 7. The commission shall establish standards for an
integrated resource plan that shall be filed by an electric utility
requesting a certificate. An integrated resource plan shall include
all of the following:
(a) A long-term forecast of the electric utility's load
growth.
(b) The type of generation technology proposed for the
generation facility and the proposed capacity of the generation
facility.
(c) Energy purchased or produced by the electric utility
pursuant to any renewable portfolio standard.
(d) Energy efficiency savings, load management savings, and
demand response savings for the electric utility.
(e) Electric transmission options for the electric utility.
Sec. 8. (1) Customers who receive electric generation service
from an electric utility when a certificate is issued but
subsequently receive electric generation service from an
alternative electric supplier shall be assessed a prorated share of
the fixed cost of the new plant through a distribution charge
established by the commission.
(2) Customers who receive electric generation service from an
alternative electric supplier when a certificate is issued but
subsequently receive electric generation service from an electric
utility that receives a certificate will be assessed the cost of
the new plant in their base rates. If that customer subsequently
receives service from an alternative electric supplier, that
customer shall be assessed a prorated share of the fixed cost of
the new plant through a distribution charge established by the
commission.
(3) Customers who receive electric generation service from an
alternative electric supplier when a certificate is issued shall
not be assessed the cost of the generation facility that receives a
certificate as long as they do not receive electric generation
service from an electric utility that receives a certificate.
Sec. 9. (1) Except as otherwise provided in this section,
information obtained by the commission under this act is a public
record as provided in the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246.
(2) An electric utility may designate information received by
a third party that the electric utility submits to the commission
in an application for a certificate or in other documents required
by the commission for purposes of certification as being only for
the confidential use of the commission. The commission shall notify
the electric utility of a request for public records under section
5 of the freedom of information act, 1976 PA 442, MCL 15.235, if
the scope of the request includes information designated as
confidential. The electric utility has 10 days after the receipt of
the notice to demonstrate to the commission that the information
designated as confidential should not be disclosed because the
information is a trade secret or secret process or is production,
commercial, or financial information the disclosure of which would
jeopardize the competitive position of the electric utility or the
person from whom the information was obtained. The commission shall
not grant the request for the information if the electric utility
demonstrates to the satisfaction of the commission that the
information should not be disclosed for a reason authorized in this
section. If the commission makes a decision to grant a request, the
information requested shall not be released until 3 days have
elapsed after notice of the decision is provided to the electric
utility.
Sec. 10. (1) The commission may promulgate rules to implement
this act pursuant to the administrative procedures act of 1969,
1969 PA 306, MCL 24.201 to 24.328. The rules may contain standards
to determine a proposed electric generation facility's health and
safety aspects.
(2) Until rules are promulgated as provided in subsection (1),
the commission shall consider and determine any health or safety
issue a party raises in a proceeding concerning a certificate
application.