By Bruce Rolfe
A small audience of seven received insight on Michigan’s new renewable energy law at an event hosted by the Climax Village Council February 21 in the Prairie Historical Room at Lawrence Memorial District Library.
Catherine P. Kaufman, a partner at Bauckham, Sparks, Thall, Seeber, & Kaufman PC, made the presentation and answered questions.
Kaufman focused 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. She discussed the new provisions and new processes that are part of the new law and what power is left for local municipalities.
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.
The attorney briefly talked about provisions and restrictions for wind, solar, and battery storage such as setback, maximum height, noise, fencing, fire safety, and lighting.
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 adopt any new ordinances.
Kaufman also informed the audience about the need for a local municipality to have a Compatible Renewable Energy Ordinance in place. 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. A CREO cannot be more restrictive on setbacks, noise restrictions, height restrictions and all other items listed in the statue. Kaufman adds all affected local governments must have a CREO in order for the applicant to be required to use it. This includes any townships, counties, villages or cities where the project is located.
If all affected local units timely notify the developer that they have a compatible renewable energy ordinance (CREO), the developer must start down an alternate path for local approval.
When a 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.
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 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.
Kaufman said it is important now for the Village Council to determine if it will want to pursue a CREO and if so, there are timelines for CREO adoption that includes holding public hearings. The Village would also need to collaborate with the county and neighboring municipalities.
Kaufman said if a developer seeks to place a renewable energy facility in an area there are three pathways - through the Michigan Public Service Commission, a CREO or a “workable” ordinance. If a municipality does not have a CREO, the developer can go right to the MPSC.
A small audience of seven received insight on Michigan’s new renewable energy law at an event hosted by the Climax Village Council February 21 in the Prairie Historical Room at Lawrence Memorial District Library.
Catherine P. Kaufman, a partner at Bauckham, Sparks, Thall, Seeber, & Kaufman PC, made the presentation and answered questions.
Kaufman focused 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. She discussed the new provisions and new processes that are part of the new law and what power is left for local municipalities.
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.
The attorney briefly talked about provisions and restrictions for wind, solar, and battery storage such as setback, maximum height, noise, fencing, fire safety, and lighting.
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 adopt any new ordinances.
Kaufman also informed the audience about the need for a local municipality to have a Compatible Renewable Energy Ordinance in place. 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. A CREO cannot be more restrictive on setbacks, noise restrictions, height restrictions and all other items listed in the statue. Kaufman adds all affected local governments must have a CREO in order for the applicant to be required to use it. This includes any townships, counties, villages or cities where the project is located.
If all affected local units timely notify the developer that they have a compatible renewable energy ordinance (CREO), the developer must start down an alternate path for local approval.
When a 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.
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 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.
Kaufman said it is important now for the Village Council to determine if it will want to pursue a CREO and if so, there are timelines for CREO adoption that includes holding public hearings. The Village would also need to collaborate with the county and neighboring municipalities.
Kaufman said if a developer seeks to place a renewable energy facility in an area there are three pathways - through the Michigan Public Service Commission, a CREO or a “workable” ordinance. If a municipality does not have a CREO, the developer can go right to the MPSC.
––––––––––––––––––––
Subscribe to the Legal News!
https://legalnews.com/Home/Subscription
Full access to public notices, articles, columns, archives, statistics, calendar and more
Day Pass Only $4.95!
One-County $80/year
Three-County & Full Pass also available
