Affected Local Unit of Government

Under PA 233, local governments’ options for siting renewables remain largely unchanged from the options that existed prior to the enactment of PA 233. If a local government has a Compatible Renewable Energy Ordinance (CREO), then a proposed renewable energy project must go through the local siting process, unless the ALU requests the Commission require an applicant to apply for a certificate. If a local government does not have a CREO, local siting may still occur, but developers may, at their option, turn to the state’s process for siting approval, provided the applicant meets the statutory requirements for doing so.

1. Local units of government retain their control and authority for siting renewable energy facilities when they claim CREO status. Local siting is still an option even if a local unit of government does not have a CREO. If a local unit of government does not have a CREO, then a developer may bring the proposed project to the Michigan Public Service Commission (MPSC) to have the project reviewed and sited, provided the applicant meets the statutory requirements for doing so.
2. Under most circumstances, applicants with the MPSC will be required to make a 1-time grant to each affected local unit of government that will be no more than $75,000 per ALU and not more than $150,000 in total. These funds are provided to cover local units of governments’ costs associated with the intervention in the contested case process of the proposed project. ALUs may be able to intervene by right in that contested case process.

Once a developer contacts the chief elected official of an affected local unit of government to discuss a proposed energy facility, the affected local unit of government should notify the developer if it has a CREO within 30 days (see the Commission’s October 10, 2024 Order, Pg. 11 – 12).

The affected local unit of government should send its request to the Commission by contacting LARA-MPSC-Edockets@michigan.gov to the attention of the MPSC Executive Secretary and to the Staff at LARA-MPSC-Siting@michigan.gov. A copy of the requestion should also be provided to the developer.

Yes. Several resources exist to provide guidance to local communities seeking to establish zoning ordinances for renewable energy facilities and several are provided below. These resources are provided for educational purposes and to aid local units of government in establishing zoning for renewable energy facilities. Provision of these resources should not be interpreted as an endorsement of the resource by the MPSC or Commission Staff.

1. Planning & Zoning for Solar Energy Systems: A Guide for Michigan Local Governments
2. Planning & Zoning for Battery Energy Storage Systems: A Guide for Local Governments
3. Sample Zoning for Wind Energy Systems 2020
4. Renewable Energy Academy

Yes. The developer must hold a public meeting in each ALU, unless exempted by certain circumstances. An exception to the requirement that a public meeting be held within each affected local unit of government occurs when one of the following is true:

1. The ALU notified the developer that it had a CREO, and the application was not timely approved or denied by the ALU
2. The ALU notified the developer that it had a CREO and the ALU subsequently denied the application despite the proposed project complying PA 233 Section 226(8)
3. The ALU notified the developer that it had a CREO and later amends its zoning ordinances so that it imposes requirements more restrictive than PA 233 Section 226(8)
4. The ALU is a village, and a public meeting has already been held in the township containing that village
5. There are not facilities of sufficient size within the ALU to accommodate the public meeting (to be evaluated on a case-by-case basis; the public meeting is still required, and must be held as close as feasible to the ALU in question)

Yes. Pursuant to the MPSC process, each ALU will receive a copy of the site plan when a project application is received at the MPSC.

Each ALU is eligible for the one-time grant unless one of the following is true:

1. The ALU notified the developer that it had a CREO, and the application was subsequently not reviewed promptly by the ALU
2. The ALU notified the developer that it had a CREO and subsequently denied the application despite the proposed project complying with PA 233 Section 226(8)
3. The ALU notified the developer that it had a CREO and later amends its CREO so that it imposes requirements for restrictive than PA 233 Section 226(8).

Each ALU shall deposit the grant in a local intervenor compensation fund for use in covering costs associated with the ALU’s participation in the contested case preceding on the application for a certificate.

1. Within 15 days following the prehearing, one-time grants to ALUs that have not intervened in the case shall be refunded to the developer.
2. ALUs that have participated as intervenors in the case are directed to file an official exhibit in the case prior to the conclusion of cross examination or the close of the record containing paid invoices for legal services for participation in the case and estimate for funds to be spent on legal services for briefing and exceptions.
3. Remaining one-time grant funds not utilized for participation in the case shall be refunded to the applicant within 30 days following the date on which answers to petitions for rehearing on the Commission’s final order are due.

Yes. The following resource is shared for informational purposes and to help ALUs track their rights and responsibilities throughout the consideration of a case under PA 233.  Provision of this resource should not be interpreted as an endorsement of the resource by the MPSC or Commission Staff.

Checklist for Local Governments (University of Michigan)