History

• The push to promote renewable energy in Michigan began in earnest in 2002 when Michigan created a tax exemption for businesses with alternative energy property (generally defined as: alternative energy system, alternative energy vehicles and the personal property of an alternative energy technology business). The exemption applied to taxes levied after December 31, 2002 and before January 1, 2013.
• In 2008 a spate of legislation was passed that was designed to promote renewable energy, including Act 270 which amended the Michigan Business Tax Act and provided a tax credit to any photovoltaic manufacturing business that entered into an agreement with the Michigan Economic Growth Authority to construct a new manufacturing plant.
• One of the larger pieces of “sustainable/green” legislation enacted in 2008 – Public Act 295 – included a modest renewable portfolio standard that was designed to increase the use of renewable energy in Michigan by requiring electrical utilities to source 10% of their electrical production from renewable energy systems such as wind or solar.
• In 2010 Michigan revised its construction code to adopt ASHRAE Standard 90.1-2007, which sets forth more energy efficiency requirements than the prior ASHRAE Standard that Michigan relied upon for years.

Recent Developments
Since 2010, the push for sustainability based legislation appears to have tapered off – in fact, it seems to have been put in reverse. For example, two bills introduced in 2011 that initially received a lot of press, have fallen off the radar screen: House Bills (HB) 4286 and 4049.

HB 4286 would have provided a taxpayer with a tax credit equal to 50% of the cost of constructing a “green building”. Similarly, HB 4049 proposed a tax credit for builders of energy efficient homes. However, neither bill made it out of the Committee on Tax Policy.

Moreover, HB 5447, proposed by State House Representative Franz in February, 2012, would repeal Michigan’s 10% renewable energy standard. The bill, however, is opposed by a wide variety of groups so its fate is unclear.

Are these actions (or inactions as the case may be) due to economic factors (we just went through one of the biggest recessions/depressions since 1929)? A shift in concern? Or is it something deeper – such as a growing public distrust along the lines of Arizona SB 1507 which would ban any state sustainability initiatives whatsoever? (An interesting video of the AZ Senate Judiciary Committee hearing on this bill can be viewed here.)

If there is a shift away from sustainability initiatives, it’s most likely due to a variety of factors. Nonetheless, at least one study, performed in Canada, shows that our neighbors to the north are becoming less concerned with environmental issues. If the same thing is occurring in the U.S. and Michigan, it could explain the recent legislative activity that appears to be shifting away from publically funded sustainability measures. Given the impact such a trend could have on “green” and “sustainable” businesses in Michigan, we will continue to monitor it and provide updates.

The post Is Legislative Support for Sustainability Initiatives on the Decline? appeared first on Dawda PLC.

Unbiased, scientific support?

Manufacturers of products should take a closer look at the types of certifications and seals of approval it places on their products and packages. The FTC considers it deceptive to suggest that a product, package or service has been endorsed or certified by an independent third party unless there is nonbiased scientific data, that is accepted in the scientific community that supports that assertion. In addition, the manufacturer must be aware that obtaining third party certification does not relieve the manufacturer of its obligation to ensure that the advertisement of the product are supported by scientific evidence, and that the seal is consistent with the message being communicated by the certification.

Implied Environmental Benefits

If the seal of approval suggests that a product has an overall general environmental benefit without any clarification as to the basis for that certification, this is seen as suspect by the FTC. To avoid such a claim of deception, the manufacturer should, in a clear and prominent way, convey that the seal refers to a specific or limited environmental benefit and it is not an approval of a broad general benefit. This qualifying language must appear within the advertisement and it is not sufficient to refer the consumer to a website for additional details.

Trade Associations

The manufacturer may also need to clarify that the seal was obtained from an industry trade association. If the trade group uses an independent certifier that consents to established testing procedures with an independent auditor, then the use of an industry trade association’s certification may be proper. If the seal of approval refers to an industry association, it must be clear that the product has been certified by an industry certifier, and that certification was not awarded by an independent certifying association.

Industry organizations that control the certification process may be considered by the FTC as deceptive seals of approval. If there is a material connection between the company and the certifying organization it would be deceptive to not reveal this relationship to the consumer. There should be no material connection between the product and the company issuing the seal of approval, without revealing the connection.

Qualifying Statements

Another type of certification and seal of approval that can create confusion among consumers are those issued by membership only associations. The FTC suggests that the use of such seals could be deceptive and that a membership seal should be accompanied with a qualifying statement. An example of such qualifying language is; “our company is a member of the EcoFriendly Association, but it has not evaluated this product”.

So when in doubt, always have sufficient independent scientific data to support any advertisements, even when a product was awarded a seal of approval.

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