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Defining a “Compatible Renewable Energy Ordinance” with Michigan’s New Siting Laws

The State of Michigan enacted sweeping legislation in 2023 known as the Clean and Renewable Energy and Energy Waste Reduction Act, in an effort to move the state more towards utilizing and producing clean energy.  One of the more significant parts of this legislation included a streamlined process for certifying large-scale renewable energy projects on Michigan land.  Michigan Public Act 233 specifically addresses this wind, solar, and storage certification, which went into effect late November 2024.

Prior to the clean energy legislation, the Michigan Zoning Enabling Act empowered local governments with the legal discretion to approve renewable energy development projects. Consequently, local governments tended to have the final authority over whether these projects were approved or denied.  However, under the new law, much of that authority is now transferred to the Michigan Public Service Commission (MPSC).  In effect, local ordinances concerning specific siting and land use standards for larger clean energy projects must comply with requirements under Public Act 233.  This has resulted in municipalities across the state to rethink and reform their local land use and zoning regulations.

Therefore, what constitutes a compatible local ordinance that covers renewable energy facilities?  Under the new law, a “compatible renewable energy ordinance” is defined as an ordinance that provides for the development of energy facilities within the local unit of government, the requirements of which are no more restrictive than provisions included in the statute. MCL 460.1221(f).  Specifically, MCL 125.1226 sets forth statewide standards for reviewing applications and issuing certifications for proposed solar, wind, and energy storage facilities. Section 1226(8) provides requirements specific to the type of project applied for.  

For solar energy facilities, the applicable standards are as follows:

  • Minimum setback requirements, with setback distances measured from the nearest edge of the perimeter fencing of the facility, for occupied community buildings and dwelling on nonparticipating properties, public road right-of-way, and nonparticipating parties.
  • Solar facilities’ fencing must comply with the latest version of the National Electric Code.
  • Solar panel components must not exceed a maximum height of 25 feet above ground when the arrays are a full tilt.
  • Solar facilities must not generate sound that exceeds 55 average hourly decibels by demonstrating such sound in accordance with the statute and the American National Standards Institute.
  • Solar facilities will implement dark sky-friendly lighting solutions.
  • And solar facilities must comply with any more stringent requirements adopted by the MPSC.

With respect to wind energy facilities, the applicable standards are as follows:

  • Minimum setback distances, measured from the center of the base of the wind tower, for occupied community buildings and residences on nonparticipating properties, residences and other structures on participating properties, nonparticipating property lines, public road right-of-way, and overhead communications and electric transmissions (not including utility service lines to individual houses or outbuildings).
  • Each wind tower must be sited so that any occupied community building or nonparticipating residence will not experience more than 30 hours per year of shadow flicker under standard, planned operating conditions.
  • Each wind tower blade must not exceed the height allowed as determined by the Federal Aviation Administration.
  • Wind energy facilities must not generate a sound that exceeds 55 average hourly decibels as modeled in accordance with the statute.
  • Wind energy facilities must be equipped with functioning light-mitigating technologies, as described under the statute.
  • Wind energy facilities must meet any other standards imposed by the MPSC related to radar interference, lighting, or other relevant issues.
  • Wind energy facilities must comply with any more stringent requirements adopted by the MPSC.

Similarly, energy storage facilities are subject to the following:

  • Minimum setback requirements for occupied community buildings and dwelling on nonparticipating properties, public road right-of-way, and nonparticipating parties.
  • Storage facilities must comply with the Standard for the Installation of Stationary Energy Storage Systems.
  • Storage facilities also must not generate a sound exceeding 55 average hourly decibels as demonstrated in accordance with the statute.
  • Storage facilities must implement dark sky-friendly lighting solutions.
  • And storage facilities must comply with more stringent requirements adopted by the MPSC.

Accordingly, “compatible renewable energy ordinances” cannot be stricter than these standards under Section 1226(8) of the statute. 

By shifting much of the permitting authority from local governments to the Michigan Public Service Commission, the state aims to create a more consistent and efficient framework for renewable energy development.  Nevertheless, municipalities maintain an opportunity to oversee these proposed projects in their communities by adopting ordinances aligned with the new siting law.

As the law continues to take effect, there will be further reforms to zoning ordinances by more municipalities, as well as differing legal interpretations and potential legal challenges. Recently, Michigan House Republicans introduced legislation to return authority over these specific development projects to local units of government.  At this time the legislation has been referred to the state’s House Energy Committee, awaiting consideration. Therefore, staying informed about changes at either the local level or state level is important to navigating Michigan’s evolving renewable energy landscape.

If you have questions about how these changes impact your community, business, or property, the land use and zoning attorneys at Dalton & Tomich, PLC, are here to help. 

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