Commission reviews state’s new renewable energy law, options to address solar and wind in updated ordinances

By Bruce Rolfe

The Climax Township Planning Commission continued to discuss an updated zoning ordinance as well as the State of Michigan’s new Public Act 233 law that relates to renewable energy at its January 22 meeting.

Township ordinances currently do not address any type of solar or wind energy system.

Planning Commission Chairman Dixon Brubaker read an article from Township Focus magazine written by Climax Township attorney Robert E. Thall, of Bauckham, Thall, Seeber, Kaufman, & Koches PC, that offered more insight on Public Act 233 and 234 of 2023 signed into law by Governor Whitmer that removes local control from townships and other units of government for siting of certain renewable energy wind, solar and battery storage facilities.  

The new law replaces local authority for siting renewable facilities with the Michigan Public Service Commission (MPSC). The new law goes into effect November 28, 2024.

According to the article written by Thall, local units of government will need to review compliance with the regulation process set forth in PA 233; determine what course of action makes sense for the local unit of government; make any needed revisions to current ordinances or master plans; and adapt any new ordinances.

The Climax Township Planning Commission and Climax Township Board started the process by approving the updated Master Plan, specifically amending Section 5 and 6 regarding utility solar and wind.

Now that the 42-day waiting period for public comment has passed, the Planning Commission will considering a special hearing on the changes that were made on the Master Plan before the regular meeting February 26 at 6:30 p.m., however a confimation date and time was not available. If the special hearing is held February 26, the Planning Commission will approve any changes at its regular meeting and then send the recommendation and any public input about the new Master Plan to the Township Board to consider at its next township board meeting.

According to Thall’s Township Focus article, the developer can choose to either pursue a state certificate through the MPSC or propose construction outside of PA 233 under a local zoning ordinance or in a community where no local zoning exists.

Thall points out in his article there are a couple of exceptions to the developer’s choice.

A local unit of givernment with zoning jurisdiction may request that the MPSC require a developer to go through the state certificate process for construction. However Thall said in the article for various reasons a local unit of government may require use of the state approval process even when the developer may want to go under its local zoning ordinance for approval. Thall adds even if the developer decides to pursue a state certificate for construction, the legislation may direct them down a different route under a severly restricted local approval process. If all affected local units timely notify the developer that they have a compatible renewable energy ordinance (CREO), the developer must start down this alternate path for local approval.

Thall’s article adds a CREO is an ordinance that provides for the development of utility-scale energy facilities within the local unit of government. Inside the CREO are requirements for three types of renewable energy, solar energy facilities, wind energy facilities and energy storage facilities.

Brubaker said this is why it will be important the Township includes a CREO in its zoning book. He said if the township does not have a CREO , the township could loose out on some financial funds. He adds Thall’s article lays the foundation what the township will be working on.

Thall’s article adds if a developer goes through the state or through a local unit with a CREO, a public meeting in each affected local unit must be held. Thall notes at least 60 days before a public meeting, a developer is required to offer to meet with the chief elected official or their designee for each affected local unit to discuss the site plan.

The Township attorney also writes in the article if within 30 days following the meeting to discuss the site plan, the chief elected official of each affected local unit notifies the developer that the local unit has a CREO, the developer must then file for local approval with each affected local unit. Thall cautions each other affected local unit must also have their own CREO in order to require the developer to go through the local application process.

The article written by Thall also notes when the developer files an application with the MPSC, it must grant to each affected local unit an amount determined by the MPSC up to $75,000 per unit, not to exceed $150,000 in total. Each affected local unit must deposit the grant in a local intervenor compensation fund to be used to cover costs associated with participation in the contested case proceeding on the application for a certificate.

Thall also points out in his article when a developer uses the MPSC certificate process, the developer must pay the affected local unit $2,000 per megawatt of nameplate capacity located within the affected local unit. Large utility solar arrays need approximately 350 acres or more to produce 50 megawatts and wind energy facilities that produce 100 megawatts also require 350 acres or more.

The article author adds the payment may only be used for police, fire, public safety or other infrastructure. It may also be used for other projects as agreed to by the local unit and the applicant.

Brubaker adds he will visit more with the township attorney to review Residential and Commercial zoning ordinances that address solar other local units of government are using, that is close to what Climax Township is looking for.

“What we are going to do, we have different things that we’re going to try to accomplish by summer, is to have some type of zoning ordinance in here that deals with residential solar,” said Brubaker, who noted township residents can currently have solar panels on their homes but there are some state guidelines that need to be followed.

“The next thing we would like to do is commercial. Smaller scale. It’s in between residential and industrial. The State has taken industrial away from us, but we still have to have something that addresses that in our zoning ordinance,” continued the Planning Commission Chairman.

There is currently an initiative by Citizens for Local Choice to over turn the recently passed solar siting law and get a proposal on the November General Election. The group said the Board of Canvassers recently approved the petition language and the group is in the process of having petitions printed. The group will have until May 29 to collect 356,958 valid signatures to get the proposal placed on the November election ballot.

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