Michigan Commission Adopts New Application Procedures for Siting of Renewable Energy Projects

The Michigan Public Service Commission on Oct. 10 adopted application procedures that electricity providers and independent power companies must follow when seeking approval for siting renewable energy projects. With the adoption of this new procedure, the commission clarified that the siting process should start at the local level in most instances and the commission can consider applications under exceptional conditions listed in the order.

The order implements provisions in Public Act 233 of 2023, which provides siting authority to the commission for utility-scale solar, wind, and energy storage projects under certain conditions. The act takes effect on Nov. 29. Project sizes specified in the act include:

• Any solar energy facility with a nameplate capacity of 50 megawatts (MW)
• Any wind energy facility with a nameplate capacity of 100 MW or more
• Any energy storage facility with a nameplate capacity of 50 MW or more and an energy discharge capability of 200 megawatt-hours (MWh) or more

Earlier this year, the commission directed staff to file recommendations on instructions for filing applications, guidance related to compatible renewable energy ordinances, or CREOs, and other matters. This proceeding led to staff consulting with stakeholders such as local officials and project developers, conducting site visits and research to draw up recommendations.

The staff formed application instructions to guide applicants through the process of applying for a certificate for a renewable energy facility, with advice on required documentation, preapplication criteria, fees, and submitting a complete application.

In its order, the commission clarified that under the new law, most renewable energy project siting processes must begin at the local level. The commission can only consider applications if the local government denies the application, fails to decide within 120 days, or imposes stricter provisions than state law. Exceptions include when a local government has a development moratorium or requests the developer to use the commission’s process. The commission also noted that local siting processes remain an option for developers but did not offer guidance on those outside its jurisdiction. The commission accepted staff’s proposal that the act should also apply to hybrid facilities that use combined technologies.

Among other things, the commission’s order specifies that a CREO may only contain requirements for setback, fencing, height, sound, and other applicable conditions outlined in the act and may not contain more restrictive requirements. The commission said it will review the entirety of a proposed project when it is located in multiple local communities where some have CREOs and some do not. Further, the order provides a more restrictive definition of “Affected Local Unit of government” to include local governments that exercise zoning jurisdiction. The act does not allow for a CREO dispute resolution process that would let developers forgo the local siting approval if the chief elected official of each ALU provides notification that the ALU has a CREO.