Ballot Initiative on Alternative Energy Planned

by Bruce Goodman, Energy Lawyer

A coalition of groups and companies is seeking to place a constitutional amendment before voters on November 3, 2012 to set Michigan’s energy policy. The proposed ballot language would require that by 2025 at least 25 percent of each electricity provider’s annual retail electricity sales be derived from clean renewable electric energy sources. The requirement would cover investor-owned, municipal-owned, and cooperative-owned electric utilities in the state. Petitions requesting that the initiative be placed on the November ballot must be filed by July 9, 2012, and must contain at least 322,609 valid signatures. Although the period during which signatures may be sought is 180 days, the petition must be filed at least 120 days before the election. The initiative requires a majority of the votes cast to go into effect.

Good Things Come to Those Who Wait?

by Bruce Goodman, Energy Lawyer

In May 2011, in front of 40 of Michigan’s top leaders in clean energy manufacturing, Governor Snyder presented the first Reinventing Michigan Award to Energetx Composites. Having waited impatiently for four months, this group of entrepreneurs (ready to unleash their economic gardening skills, resources, and innovation) asked the Governor for his energy policy. Answer: his energy policy would be forthcoming “in the fall”. In August, when Valerie Brader was named the state’s energy policy officer, Mike Finney stated “Energy concerns are at the center of our economic future, whether we are talking about its cost and availability or job creation and new business potential in green energy manufacturing.”  Then word went out that the Governor’s energy policy statement would be pushed to the first quarter of 2012. More waiting for those concerned about: RPS, standby rates, distributed energy, bioenergy, offshore wind, deregulation, customer choice, coal-fired generation, solar manufacturing, and advanced energy storage. The State of the State message last week yielded another setback: energy policy is being pushed off until “this fall”. Michigan has been treading water on energy policy for over a year. We are in a policy twilight zone. Elected officials need to hear from the clean energy manufacturing community now. Policy delayed is policy denied.

New Bio-economy Research Center at MSU

by Bruce Goodman, Energy Lawyer 

With an initial goal of developing cost effective, off-the-shelf anaerobic digestion technology for small and medium-sized farms, Michigan State University has established its Anaerobic Digester Research and Education Center. The Center brings together resources that were spread across four laboratories on the East Lansing campus. There are already 150 manure digesters at large dairy farms across the nation, with the potential for 8,000 more according to EPA estimates. If all sites implemented biogas systems, they could generate 1,500 MW of renewable energy. Michigan has 6,000 small to medium dairy farms that are being targeted under the MSU effort.

Pioneering Technology to be Used at Cellulosic Biobutanol Refinery

by Bruce Goodman, Energy Lawyer 

Cobalt Technologies and American Process Inc. have agreed to build the world’s first industrial-scale cellulosic biorefinery to produce biobutanol in Alpena.  The continuous fermentation and distillation technology will convert cellulosic biomass feedstock into fermentable sugars that will be used to produce ethanol and biobutanol.  The biobutanol can be used “as is” in paints, coatings and blended with gasoline, diesel and ethanol, or it can be converted into bio-based plastics or full performance jet fuel.  Ethanol production will begin in early 2012, with a switch to biobutanol later in the year.  Funding for the project includes grants of $18 million from the U.S. Department of Energy and $4 million from the State of Michigan.

Demo Energy Crops Planted in Midland

by Bruce Goodman, Energy Lawyer 

Dow Corning Corporation will soon have a bio-mass energy facility built at its Midland location which will  supply steam and up to 40 MW of electricity.  To be owned and operated by Midland Power Station, formerly Cirque Energy, the electricity and steam will be generated through the gasification of such feedstock as tree waste, energy crops and agricultural waste.  Experimentation with ten test plots of various perennial energy crops has begun as employees recently planted giant miscanthus, switch grass, big bluestem, Indian grass, sorghum, willow, and poplar trees on adjacent properties.  ”It saves money; it saves the environment, ” explains Cameron Fryzel, a summer intern working on the project. 

Mascoma to Raise More Money in IPO?

by Bruce Goodman, Energy Lawyer

Mascoma Corporation, yet to break ground on its Kinross, Michigan non-food cellulosic ethanol facility, plans to raise up to $100 Million in an initial public offering (IPO) of stock.  The company has developed technology and genetically modified yeast with the potential to cut the cost of breaking down cellulose and fermenting the sugar.  It is already producing ethanol from wood on a demonstration scale at its facility in Rome, NY, and its affiliate Frontier Renewable Resources is developing the commercial operation at Kinross.  The air permit for the facility was issued in July.  Investors in the parent company include General Catalyst Partners, Kleiner Perkilns Caufield & Byers, VantagePoint Venture Partners, Atlas Venture, Valero, General Motors, Pinnacle Ventures, Flagship Ventures, Khosla Ventures, U.S. Department of Energy, State of New York, and the State of Michigan.

If I Ruled the World (or maybe just the State)

by Bruce Goodman, Energy Lawyer

Five elements to include in an energy policy for Michigan:

BIOMASS ENERGY: Make use of the energy in biomass that is going to waste in this state. The BTU content of the “unused biomass” in the state of Michigan is enormous. 

ENERGY EFFICIENCY/CONSERVATION: Make better use of our existing energy resources. Because our energy costs are so low, citizens and industry are not very aggressive in avoiding the “waste” of electricity and fuels. Increasing the price of energy (a carbon tax would be a start with a redistribution of the revenues to accomplish energy efficiency) is an option that deserves serious consideration.

DEREGULATION/CUSTOMER CHOICE ON ELECTRICITY: Reintroduce competition into the purchase and production of electricity. The deregulation of Michigan’s electric industry which was begun in 2000 was reversed in 2008. Just as competition in the telephone industry drove down prices and fostered innovation, the same competitive effect could drive Michigan’s electric industry.

ENCOURAGE ELECTRIC VEHICLES: Make electric cars work in Michigan. The state has placed a huge bet on the success of the electric vehicle industry; it is time to lead the nation in electric vehicle ownership. State government should fill its fleets with electric vehicles and the infrastructure for electric vehicles needs to be built out. Consider tax incentives for vehicle purchases.

BE A MODEL FOR RENEWABLE ENERGY: Made-in-Michigan renewable products and technology could lead the world. Michigan already is a leader in the solar energy field with Hemlock Semiconductor and  United Solar Ovonics; we need to demonstrate how this technology can be adapted for integration into buildings, the electric grid, and society. Similarly, Michigan has fledgling biofuels, biomass, wind, and geothermal industries and technologies that need to be strongly encouraged, whether with grants, tax incentives, or other assistance. To make Michigan a showcase for the implementation of these technologies, we need a larger renewable portfolio standard (from 10 percent to 25 percent) and the removal of barriers to self generation (i.e.  unreasonably high standby rates and unreasonably expensive interconnection charges).

These may not be the top five, but they deserve to be near the
top of the list.

Community Energy Plan for Holland

by Bruce Goodman, Energy Lawyer

Garforth International and a team of city employees recently presented a Community Energy Plan to a town hall meeting in Holland. The plan provided national and world-wide background information on energy issues, and suggested a course of action for the City of Holland leading up to its bicentennial in 2047. Five scenarios for managing and meeting future electric demands were offered, with various combinations of: wind energy, natural gas generation, district heating infrastructure, solar energy, biofuels, wood chips, coal, and wastewater treatment plant sludge incineration. Scenario B was recommended, which proposes continuing the city’s current course of action, aggressively pursuing energy efficiency projects, and making investments in wind, solar, and other renewable resources. The next step is to have the Community Sustainability Committee make recommendations to the City Council.

West Michigan as Energy Hub

 by Bruce Goodman, Energy Lawyer

Veolia Energy intends on using its investment in the Grand Rapids steam loop as a platform for other energy projects in the Great Lakes. It already monitors and manages a landfill gas project in Wisconsin from its downtown Grand Rapids control room. Now the company is pursuing coal or gasified cogeneration opportunities in Michigan and the Great Lake region, with healthcare facilities and college campuses as prime candidates. The company is also looking at wind and solar projects.

State Senate Hearing to Evaluate RPS

by Bruce Goodman, Energy Lawyer  

State Senator Mike Nofs has commenced Energy and Technology Committee hearings on Public Act 295 of 2008. This statute, The Clean, Renewable, and Efficient Energy Act, set the renewable portfolio standard for Michigan at 10 percent by 2015. On October 4 testimony was presented by Consumers Energy, DSF Corporation, Michigan Electric Cooperative, Ventower Industries, Monroe Community College, Greater Gratiot Development Inc., Wind Resource, Dowding Industries, and 5 Lakes Energy. On October 11 testimony was heard from representatives of DTE, ITC, Michigan Electric and Gas Association, Dow Corning, Heritage Sustainable Energy, Great Lakes Renewable Energy Association, Northern Power Systems, Michigan Environmental Council, Energetx Composites, Michigan Clean Water Action, Citizens for Wind Energy, Waste Management, and Wind on the Wires. More hearings are scheduled.