Solar Activity in Saginaw Bay Area

by Bruce Goodman, Energy Lawyer

Suniva Inc. is looking for acceptable financing and favorable market conditions before committing to a 2013 start-up of its $250 million solar cell manufacturing facility in Thomas Township. To assist with financing, in December the Michigan Economic Development Authority authorized an $8.7 million tax credit and renewed a previously granted $15 million photovoltaic Michigan Business Tax credit. Ground has been broken on the 240-acre Great Lakes Solar Technology Park where 40 acres have been set aside for Suniva. Meanwhile, GlobalWatt, a developer of solar products, shut down its manufacturing facility in Saginaw area and left behind unused tax credits to relocate operations in Copemish and Hudsonville.

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.

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.

Should the Governor Go Beyond Fuel Taxes to an Overall Carbon Tax?

 by Bruce Goodman, Energy Lawyer

It is being reported that Governor Snyder intends on seeking a change in the transportation fuels taxing structure, shifting the application of the tax from the retail to the wholesale level. If true, is it time to consider a more general fossil fuel carbon tax? It has long been recognized that transportation fuels lead to “externalities” for which a tax is appropriate. These include the need to build and repair roads, bridges and other infrastructure. Gasoline and diesel tax revenues are intended to cover these costs. Similarly, fossil fuels used for electric generation also have externalities. For example, coal-fired generation has long-term health and environmental impacts (and the need for regulatory oversight) which ultimately costs the state and its citizens money. Without putting the Michigan economy at risk, the Governor could seek a modest carbon tax on coal and natural gas used to produce electricity that would reward the move toward 10 percent renewable, made-in-Michigan, energy. It would create a new economic rationale for increasing our dependence on locally-produced electrons and pursuing the cheapest form of energy—conservation. Let’s start the conversation.

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.

Growing Solar Market One Rooftop at a Time

by Bruce Goodman, Energy Lawyer

In October the Dow Chemical Company introduced its PowerHouse™ Solar Shingle in Colorado, with sales in twelve other states to follow in 2012. D.R. Horton Inc., the largest homebuilder in the U.S. with operations in 26 states, is committing to install the building integrated photovoltaic (BIPV) product on 50 new homes in Spring Mesa, Colorado. Each roof will provide 3 KW of nameplate electricity. The three-part solar roofing system package includes an array of shingles, an energy monitoring system, and an inverter to convert direct current to alternating current. The PowerHouse™ solar shingle is made in Midland.

Potential for Solar Optical Battery

by Varnum’s Battery Law Industry Group

Building on research that has found a way to amplify the magnetic effect of light waves millions of times, researchers at The University of Michigan hope to generate electricity from sunlight without semiconductors or photovoltaic panels. The researchers call the charge separation phenomenon an “optical battery.”  The Department of Defense has already shown an interest in the research, and the search is on for a material that best captures the magnetic effect. The team is exploring both polymers and high-temperature transparent ceramics. In theory, this technology could be paired with PV panels positioned behind the magnetic field generator (since light energy will not be transformed by the magnetic field) to provide two sources of electric generation.

Attracting Asian Energy Industries to Michigan

by Bruce Goodman, Energy Lawyer 

Governor Snyder’s recent trade mission to Asia had an alternative energy flavor. Saginaw Future President JoAnn T. Crary went to attract Chinese solar supply chain investors to locate near Hemlock Semiconductor. [In October ground will be broken on a renewable energy park in Thomas Township to be “shovel-ready” for new companies.] Wayne County representatives touted a 1000-acre industrial site in Plymouth and Northville Townships to Japanese, Korean, and Chinese battery suppliers and energy related firms. Japanese investment in Michigan is already high; there are currently 476 Japanese-owned facilities in Michigan with nearly 32,000 employees. Economic development officials from Battle Creek, Midland, and Oakland County were also on the eight-day trip.

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.