The Michigan Senate on Thursday voted to make state government use more green energy but didn't ask the same of residents and businesses because of Republicans' worries that renewable power costs too much.
Legislation approved unanimously would require that 10 percent of electricity in state buildings come from wind, solar or other renewable sources by 2010. The standard would rise to 25 percent by 2025, though the government could avoid mandates if it turns out the cost of renewable energy is more than 5 percent higher than traditional power.
Sen. Patricia Birkholz, a Saugatuck Republican and sponsor of the bill, said it would help Michigan make progress on the renewable issue "without putting a strict mandate on the people."
Democratic Gov. Jennifer Granholm, on the other hand, wants to require that 10 percent of all electricity in the state come from renewable sources by the end of 2015. She says the mandate is urgently needed and the only way to ensure Michigan becomes a regional manufacturer of wind-power components, attracting an estimated $6 billion in investment and creating thousands of jobs.
Environmentalists and her administration point out that energy costs will go up regardless. They say requiring more green power would protect the environment and save ratepayers in the long run because building new coal-fired plants is expensive -- and the already rising cost of coal could jump even higher if Congress limits carbon dioxide emissions in coming years.
Democrats backed the bill Thursday but made it clear more steps are needed to build a renewable energy infrastructure in Michigan.
"It's a very low-hanging piece of fruit," Sen. Liz Brater, an Ann Arbor Democrat, said of making government buy green power. "We see this only as a first step."
Granholm had pushed the Legislature to pass bills in March creating a renewable portfolio standard, or RPS. But the Democratic-led House left for spring break last week without acting, favoring more meetings to try to hash out details.
The House bills would not only create an RPS but create a state energy efficiency program and rewrite a 2000 state law that opened up big utilities to competition from alternative power suppliers. No measure could become law unless all of the package is signed.
Senate Energy and Technology Chairman Bruce Patterson, a Canton Republican, said: "Since we were told by the governor that we had to act along a certain timeline, we acted."
He said if the House sends RPS legislation to the Senate, he will take a look at it. The House is considering capping residents' extra costs for green power at no more than $3 a month over 20 years.
Another bill passed by the Senate Thursday would require all Michigan electric companies to offer green energy programs to their customers, including noting on each bill the price differential between green power and nonrenewable energy. The Senate also voted to create a state income tax credit of up to $200 a year for those who participate in a green energy program.
The Senate bills were sent to the House. Thursday was the Senate's last day of session before a two-week spring break.