The Michigan Public Service Commission has adopted new rules to guide renewable energy developers as they seek permits under a new state law.

The law aims to address the increasing number of communities in Michigan that have blocked renewable energy projects — threatening to stall the state’s progress in developing cleaner sources of energy.

The law says developers must first apply for a permit to a local government that has zoning authority.

If the local government has a moratorium on any large-scale renewable energy development, or denies the permit outright, the developer can ask the state commission to take over the permitting process.

Developers can also ask the state commission to step in if the local government delays a decision on the permit longer than 120 days — or if it demands stricter requirements than what’s in the state law on issues such as road setbacks and tree screening.

The local government can also apply to the MPSC to handle the permitting application process.

Brian O’Shea is with Apex Clean Energy. He says the state law should have an overall positive effect on communities, developers, landowners and townships, because it encourages cooperation.

“This process really incentivizes people to sit around a table and hash out an agreement rather than just be fighting each other at township meetings,” he said.

O’Shea said the state law will allow farmers to use their land to produce clean energy, whereas before they could be unfairly blocked from realizing the full use and value of their property by restrictive local ordinances.

Laura Sherman is president of the Michigan Energy Innovation Business Council. She said it’s possible that a local government might choose to abuse the process, by using the 120-day permitting approval time to delay.

But she said there are significant disincentives in the state law to doing that. Communities that show “bad faith,” can be denied the law’s community benefit funding from the project, and they can also lose the $75,000 that the state provides them as part of the permitting process before the Michigan Public Service Commission.

“I think everyone would be better served if the MPSC just created a backstop and most projects didn’t have to use it,” she said.

The Michigan Townships Association opposed the new law.

In a statement, MTA Executive Director Neil Sheridan said his group participated in MPSC stakeholder meetings, and shared background on local land use considerations such as site plan review and decommissioning.

“While we are still reviewing the order and the application filing instructions and procedures, MPSC’s order confirms MTA’s interpretation that local ordinances cannot be more restrictive than provisions prescribed in the new statute, and thus cannot be tailored to meet the needs of individual communities.

Along with our legal counsel, we will continue to provide guidance to our members as they navigate the upcoming siting requirements for these large-scale renewable energy facilities that impact their communities and residents.”

The state law goes into effect on November 29.

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