Two bills passed through the state House on Wednesday, would allow the Upper Peninsula to keep their reciprocating internal combustion engine (RICE) generators despite regulations the Michigan Clean Energy and Jobs Act.
Under the act, the state must turn to 100% clean energy sources by 2040.
The generators don't expire until 2050, putting the UP in a precarious position to follow the new laws. Under the bills passed this week, they would be allowed to keep the RICE generators until they expire.
The RICE generators were put in place after the UP made the switch from coal-based energy sources in 2019. However, they still use natural gas to run, making them noncompliant with the act.
State Representative Dave Prestin (R-Cedar River) said in a statement, these bills are important not only for the UP but the entire state.
“The Tilden Mine—the second-largest iron ore mine in America—drives 60% of the U.P.’s energy demand. Energy costs make up a quarter of its operating budget. If we don’t amend the 2023 law, Tilden faces a crushing $1.3 million surcharge in 2027, which will increase until it plateaus at $15 million a month in 2040. That’s before they even flip on a light switch. No business can survive that," explained Prestin.
“If Tilden closes, the ripple effects will be felt across all of Michigan, jeopardizing thousands of good-paying union jobs, including steel mills and auto plants in southeast Michigan."
“Residential ratepayers will similarly have to pay a $90 surcharge. Small businesses like my old gas station would be paying $3,500 a month. Large industrial will be paying over $300,000 a month," Prestin said.
Lawmakers say, despite the generator's use of natural gas, the UP has still cut their CO2 emissions by more than 70%.
Next the bills will make their way to the state Senate.
