The Capitol Report

from Government Relations

September 23, 2008

Energy Policy Change Goes to Governor

The logjam on electric choice and renewable portfolio standards (RPS) broke last week, as the legislation was passed out of the legislature and sent to the governor for signature.  Both the House and Senate approved the compromise contained in House Bill 5524 and Senate Bill 213, which changes Michigan’s electrical choice law and creates a renewable portfolio standard (RPS) for the state, respectively

The bills will require Michigan electric suppliers to provide a certain percentage of power to its customers from alternative energy sources, such as wind, solar, water, or biomass, starting with a 10% level by 2015.  Northern Michigan has a number of projects in the works that would either provide power from alternative sources or manufacture parts and equipment to support the energy industry, creating a number of jobs in the region.

In addition, the bills would create stability in the electric market for the major power carriers, allowing them to build baseload power plants in Michigan and provide sustainable power sources for the long term.  Otherwise, companies would likely have to go to the open power market to buy energy from other sources not based in Michigan.

Copies of the conference report bills are available on www.mileg.org. 

Smoking Ban Mandate Legislation Back on House Agenda

The House may take up legislation as early as Tuesday that will mandate a smoking ban in all bars, restaurants and other indoor areas. 

The blanket ban laid out in the current version of HB 4163 would shut down specialty bars that cater to cigar or pipe smokers, eliminate the ability for smoking inside tobacco shops, service clubs (VFWs) and eliminate charity events that may have smoking as part of the event, such as a smoker or a cigar dinner. The governor has expressed her intent to sign the bill. 

Until now, the future of the bill had been uncertain in the House, as Detroit legislators were advocating the casino exemption be brought back into bill, as Detroit casinos would be subject to the ban, while tribal casinos would be exempt and would continue to allow smoking.  There could be an additional amendment addressing this or other exemptions, but remains unknown if that will happen.

Members are encouraged to contact their legislator, especially their Representative, with their comment on this government mandate on business owners.  The bill can be viewed at www.mileg.org.  Stay tuned for further updates.

Chamber Candidate Forums Update

Two separate Chamber hosted forums continue to move forward in northwest Michigan.  In Traverse City, five area chambers will partner together to host candidates for the Michigan House of Representatives.  Chamber sponsors are the Benzie County, Leelanau Peninsula, Traverse City Area, Kalkaska County and Elk Rapids Area chambers of commerce will host potential representatives from the 101^st, 104^th, and 105^th districts.  All six candidates have confirmed their attendance for the October 15^th event at the Oleson Center, on the campus of Northwestern Michigan College.  A meet-and-greet with the candidates is scheduled for 6-7 p.m., followed by the forum from 7-9 p.m.

The Petoskey Regional Chamber will host House candidates from the 107^th district on October 14^th.  The 107^th race pits incumbent Rep. Gary McDowell of Rudyard against challenger Alex Strobehn of Sault Ste. Marie.  The event, held in the cafeteria of North Central Michigan College, also features a meet and greet period at 6:00 p.m. followed by the forum from 7:00 – 9:00 p.m. 

Any chamber member wishing to submit a question for the candidates can be sent to Jamie@northwestmichiganbusiness.com.