Michigan 2025-2026 Regular Session

Michigan Senate Bill SB0653

Introduced
10/30/25  

Caption

Economic development: other; Michigan next energy authority act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 2 of 2002 PA 593 (MCL 207.822). TIE BAR WITH: SB 0631'25

Summary

SB 653 amends the Michigan Next Energy Authority Act’s definitions section. The bill largely modernizes and expands the statutory vocabulary used for alternative energy projects, technologies, vehicles, and systems. It adds or clarifies definitions for items such as advanced battery cells, electricity storage systems, microgrids, alternative energy marine propulsion systems, hybrid electric vehicles, hydraulic hybrid vehicles, thermoelectric systems, and other renewable or clean-fuel-related technologies. It also updates references to state entities and terminology to reflect later administrative changes, including replacing references tied to the Michigan Strategic Fund with the Bureau of Fair Competition and Free Enterprise in the future-effective language of the act. The bill is primarily definitional and does not itself create a new program or tax credit in the text provided; instead, it updates the legal framework that governs how alternative energy businesses, vehicles, and technologies are identified under the Michigan Next Energy Authority Act. Because those definitions can affect eligibility for state economic development incentives, zone designations, or other benefits under related law, the practical impact is to broaden and clarify what kinds of clean-energy and advanced-technology activities may qualify under the act. The bill is tie-barred to SB 631, meaning it would not take effect unless that companion bill also becomes law. The general sentiment suggested by the bill text is supportive of clean energy, advanced manufacturing, and economic development. The bill’s structure indicates an effort to keep Michigan’s energy-related economic development statutes current with newer technologies such as battery storage, electric vehicles, fuel cells, microgrids, and renewable fuels. No committee transcript or vote record is provided, so there is no direct evidence of opposition or support from recorded debate, but the caption and contents suggest a technical update intended to align the statute with evolving energy markets and state administrative reorganization. The main point of possible contention is the breadth of the definitions, especially where the bill expands the range of technologies that may qualify as alternative energy systems or alternative energy technology businesses. Stakeholders interested in state incentives may favor broader eligibility, while others could be concerned about how expansive definitions affect program scope, administrative discretion, or the use of public economic development tools. Another potential issue is the bill’s dependence on SB 631, which means its effect is contingent on enactment of the companion legislation.

Impact

SB 653 would amend MCL 207.822 in the Michigan Next Energy Authority Act by revising and expanding statutory definitions used throughout the act. These changes would affect how state law classifies alternative energy systems, alternative energy vehicles, clean fuels, battery storage, microgrids, and related businesses, which can in turn influence eligibility for incentives or treatment under related economic development provisions. The bill also updates references to state agencies and boards to reflect the elimination of the Michigan Strategic Fund structure referenced in the caption and text.

Sentiment

The bill appears to have a generally favorable, pro-innovation and pro-clean-energy orientation. Its language is aimed at updating state law to include newer energy technologies and to align terminology with current state administrative structures. Because no committee transcripts or votes are provided, there is no recorded floor or committee sentiment to summarize, but the bill’s content suggests a technical and broadly supportive approach rather than a controversial policy shift.

Contention

The most likely areas of contention are the scope and consequences of the expanded definitions. Supporters would likely favor broader inclusion of technologies such as electric vehicles, fuel cells, battery storage, microgrids, and renewable fuels because they can expand access to state economic development benefits. Critics might question whether the definitions are too broad, whether they could extend incentives beyond the legislature’s original intent, or whether they create ambiguity in administration. The tie-bar to SB 631 is also notable, because SB 653 cannot take effect independently.

Companion Bills

MI SB0631

Same As Economic development: Michigan strategic fund; Michigan strategic fund; eliminate, and create the economic development fair competition and free enterprise act. Creates new act & repeals (See bill).

Similar Bills

No similar bills found.