This Week in Government: Carbon Frameworks, IT Accountability, and the Fight Against Costly Mandates 

Activity accelerated in the Capitol this week with the House in session and key Senate panels taking up regulatory proposals. The Detroit Regional Chamber engaged across several committees to advance policies that foster economic competitiveness, protect fiscal integrity, and defend employers against burdensome regulatory expansion.

In the House Energy Committee, the Chamber supported House Bills 6247–6249, a package establishing a statutory framework for carbon capture, utilization, and storage. Carbon capture is the process of removing carbon from emitting sources and preventing it from reaching the atmosphere.

House Bill 6247 sets up regulatory procedures within the Department of Environment, Great Lakes, and Energy (EGLE) for Class VI injection wells and project permitting. The bill also outlines state leasing of pore space beneath state-owned lands and establishes clear liability transfer mechanisms to the state once long-term monitoring benchmarks are verified.

Complementing this, House Bill 6249 establishes the Subsurface Pore Space Act, codifying property rights to ensure surface owners hold subsurface pore space unless expressly severed. This regulatory clarity provides long-term certainty necessary to attract major industrial decarbonization investments while safeguarding private property rights.

Before the House Communications and Technology Committee, the Chamber supported House Bills 6257 and 6258, targeted reforms designed to inject independent oversight into major state technology procurements.

House Bill 6257 amends the Management and Budget Act to mandate that the Department of Technology, Management, and Budget (DTMB) contract for independent verification and validation services on information technology projects valued at more than $10 million. By capping independent verification costs at 5% of contract value and requiring routine progress reporting to legislative appropriations committees, the legislation establishes private-sector best practices that mitigate risk, eliminate systemic delays, and protect taxpayers against expensive cost overruns.

In the Senate Local Government Committee, the Chamber monitored the advancement of Senate Bill 960, designated as the Dark Store Prevention Act, which passed out of committee.

The bill authorizes municipalities to petition a county circuit court to eliminate private deed restrictions or covenants on commercial retail properties that have been vacant for at least two years and meet statutory blight thresholds. While addressing commercial property abandonment is a priority for municipal revitalization, altering private contractual agreements and recorded covenants raises significant legal and operational implications for property owners. The Chamber continues to monitor this measure closely to protect contractual certainty and flexibility in commercial development.

In the Senate Natural Resources and Agriculture Committee, the Chamber opposed two measures that would impose severe compliance hurdles and operational disruptions on commerce and manufacturing:

• Senate Bill 816 creates the PFAS Protection Act, which would require manufacturers to submit extensive product notifications to the state by 2028 and place mandatory “Made with PFAS chemicals” labels on a sweeping range of commercial and consumer products by 2029. State-specific labeling requirements create costly logistical barriers, isolate Michigan businesses from interstate supply chains, and conflict with ongoing federal regulatory frameworks.

• Senate Bill 1038 requires operators handling or storing bulk solid materials to obtain an annual certificate of operation from the state, install permanent weather stations, maintain continuous fence-line particulate monitors, and enclose all storage piles and transfer points within rigid timelines. These mandates impose major capital expenditures and administrative burdens on essential material handlers and transport facilities without demonstrated necessity.

The Chamber also monitored House Bills 6159 and 6160, introduced by Rep. Carter (D-Detroit) and Rep. Martin (R-Davison) in the House Natural Resources and Tourism Committee.

The bills create an extended producer responsibility system requiring manufacturers of portable and medium-format batteries, as well as battery-containing consumer products, to establish and finance an approved stewardship program by 2028. The proposed mandate phases in disposal bans, sets statewide collection convenience standards, and enacts labeling requirements. The Chamber will evaluate the operational and financial impact on retail, manufacturing, and distribution members as the legislation progresses.