SENATE BILL NO. 274

A bill to require the development of a plan to reduce greenhouse gas emissions from buildings; to promote payment of the prevailing wage rate on certain projects; and to provide for the powers and duties of certain state governmental entities.

the people of the state of michigan enact:

Sec. 1. As used in this act:

(a) "Building decarbonization" means the reduction or elimination of building greenhouse gas emissions.

(b) "Building greenhouse gas emissions" means the emissions of greenhouse gas from buildings, including, but not limited to, emissions from building mechanical equipment and appliances that rely on the combustion of fossil fuels.

(c) "Building mechanical equipment" includes, but is not limited to, systems that provide heating, cooling, or hot water service to 2 or more buildings on the same site.

(d) "Department" means the department of licensing and regulatory affairs.

(e) "Strategic plan" means the Michigan construction decarbonization strategic plan developed under section 2(1).

Sec. 2. (1) By 1 year after the enactment date of this act, the department shall develop a written Michigan construction decarbonization strategic plan.

(2) The strategic plan shall do all of the following:

(a) Provide guidance on technologies, building materials, and building construction methods and strategies necessary to achieve both of the following:

(i) Zero building greenhouse gas emissions for any building the construction of which commences after 2026.

(ii) Greenhouse gas emissions reductions in relevant renovation, alteration, or reconstruction projects.

(b) Set targets for building decarbonization based on the most accurate and complete climate change data and analyses, for each 3-year construction code cycle update. Separate decarbonization targets shall be established for the sector of new building construction and for the sector engaged in relevant renovation, alteration, or reconstruction of existing buildings. The targets shall, at a minimum, be sufficient for each sector to achieve the interim and final greenhouse gas emissions reduction goals under Executive Directive 2020-10.

(c) Recommend changes to building codes to achieve building decarbonization targets specified in subdivision (a)(i) and set under subdivision (b).

(d) Prioritize equity in building decarbonization.

(e) Promote the payment of the prevailing wage rate to workers on projects that implement the strategic plan.

(3) In developing the strategic plan, the department shall do all of the following:

(a) Host at least 3 public hearings and receive and respond to public comments.

(b) Review the most recent climate change modeling and greenhouse gas emissions mitigation research.

(c) Consult with the department of environment, Great Lakes, and energy, the Michigan public service commission, and the Michigan state housing development authority.

(d) Convene a stakeholder committee to advise the department. The committee shall include, but is not limited to, representatives of local government, developers, architects, labor unions, environmental and climate organizations, public health organizations, environmental justice organizations, home builders, and energy experts.

(4) In developing the strategic plan, the department may contract with independent consultants or research institutions to provide data and conduct analyses.

(5) The department shall review and, subject to subsections (3) and (4), update the strategic plan every 3 years.