Michigan is entering a new era in renewable energy development as the state prepares to implement standardized rules for siting large-scale solar and wind projects. The changes, which take effect November 29, 2024, mark a significant shift from the previous patchwork of local regulations to a more streamlined state-level process overseen by the Michigan Public Service Commission (MPSC).
The transition comes as Michigan positions itself to meet ambitious clean energy goals while balancing local control with the need for consistent, predictable development standards. Under the new framework, while most renewable energy projects will still begin their approval process at the local level, developers now have a clear path forward when they encounter excessive delays or overly restrictive local requirements.
The New Process
Prior to this legislation, renewable energy developers faced a complex landscape of varying local requirements across Michigan’s municipalities and townships. Some communities welcomed renewable projects with clear, reasonable standards, while others effectively blocked development through restrictive ordinances or indefinite moratoriums. This inconsistency created uncertainty for developers and utilities working to expand Michigan’s clean energy capacity.
The new law, part of Michigan’s Clean Energy Future package, establishes MPSC oversight for large-scale renewable energy facilities. Specifically, it applies to utility-scale solar projects, wind energy developments, energy storage facilities, and hybrid projects that combine these technologies. Not all renewable energy projects fall under this law – smaller-scale installations and residential renewable energy systems remain under local jurisdiction only.
For projects that do fall under PA 233, the path to approval depends on several factors. Most projects must begin at the local level, with two notable exceptions: projects proposed in communities with active moratoriums on renewable energy development, or cases where local governments explicitly request that developers use the state process instead of local siting procedures.
For projects that start locally, developers can seek MPSC review in three specific circumstances: when local authorities deny their application, fail to act within 120 days, or impose requirements more restrictive than state standards. When the MPSC does review a project, it has the authority to approve the application, deny it, or approve it with conditions – including requirements for site maintenance during construction and operation.
Finalized Rules and Procedures
Building on these new frameworks, the Michigan Public Service Commission recently finalized the detailed rules and procedures that will govern the siting process. Among the key decisions, the Commission adopted a narrow definition of Compatible Renewable Energy Ordinances (CREOs), which are local regulations that align with state standards. CREOs can only include requirements for specific aspects like setbacks, fencing, height, and sound levels – and explicitly cannot impose more restrictive standards than those outlined in state law.
The Commission also clarified several crucial procedural matters. It restricted the definition of Affected Local Units (ALUs) to include only governments with zoning jurisdiction, eliminating potential confusion about which local entities need to be involved in the process. For projects that span multiple communities with different regulatory approaches – where some jurisdictions have CREOs and others don’t – the MPSC will review the entire project as a whole rather than fragmenting the review process.
Importantly, while standardizing the process, the Commission maintained significant oversight authority. It can condition project approvals on developers taking “additional reasonable actions” related to project impacts, including requirements for good-faith efforts in maintaining project sites during construction and operation. The Commission decided against creating a separate CREO dispute resolution process, meaning developers cannot bypass local siting processes simply because affected communities have compatible ordinances in place.
Conclusion
As Michigan prepares for these changes to take effect on November 29, 2024, the new siting framework promises to bring greater predictability to renewable energy development while maintaining meaningful local input. The standardized process should help accelerate clean energy projects that align with state standards, while still ensuring communities have a voice in how these facilities are developed.
For developers, utilities, and local governments, the coming months will be crucial for understanding and adapting to these new procedures. While the transition may present initial challenges, the clearer rules and defined timelines should ultimately benefit all stakeholders – from communities seeking to responsibly site renewable projects to developers working to expand Michigan’s clean energy capacity. As the state works toward its clean energy goals, this standardized approach to siting marks a significant step forward in balancing local concerns with broader energy transition objectives.
