2023 House Bill 5120 / Public Act 233

Energy: alternative sources; large scale solar, wind, and energy storage facilities; authorize MPSC certification for zoning exemptions.

An act to amend 2008 PA 295, entitled “An act to require certain providers of electric service to establish and recover costs for renewable energy programs; to require certain providers of electric or natural gas service to establish energy waste reduction programs; to authorize the use of certain energy systems to meet the requirements of those programs; to provide for the approval of energy waste reduction service companies; to reduce energy waste by state agencies and the public; to create a wind energy resource zone board and provide for its power and duties; to authorize the creation and implementation of wind energy resource zones; to provide for expedited transmission line siting certificates; to provide for customer generation and net metering programs and the responsibilities of certain providers of electric service and customers with respect to customer generation and net metering; to provide for fees; to prescribe the powers and duties of certain state agencies and officials; to require the promulgation of rules and the issuance of orders; to authorize the establishment of residential energy improvement programs by providers of electric or natural gas service; and to provide for civil sanctions, remedies, and penalties,” by amending the title and section 13 (MCL 460.1013), as amended by 2016 PA 342, and by adding part 8.

AI Analysis – Experimental

Mandates electric and natural gas service providers to develop energy waste reduction programs, allowing for the recovery of costs and integrating these into rate determinations. The act supports the certification of wind, solar, and energy storage facilities before construction, establishes a wind energy resource zone board, and provides for expedited transmission line siting certificates. It outlines customer generation and net metering responsibilities, facilitates residential energy improvement programs, and regulates local ordinances to protect personal property rights, including civil sanctions, remedies, and penalties.

Introduced in the House

Oct. 10, 2023

Introduced by Rep. Abraham Aiyash (D-9) and 16 co-sponsors

Co-sponsored by Reps. Ranjeev Puri (D-24), Brenda Carter (D-53), Laurie Pohutsky (D-17), Carrie Rheingans (D-47), Kara Hope (D-74), Amos O’Neal (D-94), Erin Byrnes (D-15), Lori Stone (D-13), Sharon MacDonell (D-56), Penelope Tsernoglou (D-75), Christine Morse (D-40), Kelly Breen (D-21), Jasper Martus (D-69), Joey Andrews (D-38), Samantha Steckloff (D-19) and Jimmie Wilson (D-32)

Referred to the Committee on Energy, Communications, and Technology

Oct. 18, 2023

Reported with substitute H-1

Nov. 2, 2023

Substitute H-1 not concurred in by voice vote

Substitute H-3 offered by Rep. Abraham Aiyash (D-9)

The substitute passed by voice vote

Amendment offered by Rep. Jaime Churches (D-27)

1. Amend page 2, line 14, after “ordinances;” by inserting “to protect personal property rights;”.

The amendment passed by voice vote

Amendment offered by Rep. Angela Witwer (D-76)

1. Amend page 4, following line 10, by inserting:

“(g) “Dark sky-friendly lighting technology” means a light fixture that is designed to minimize the amount of light that escapes upward into the sky.” and relettering the remaining subdivisions.

The amendment passed by voice vote

Amendment offered by Rep. Jimmie Wilson (D-32)

1. Amend page 6, following line 11, by inserting:

“(s) “Project labor agreement” means a prehire collective bargaining agreement with 1 or more labor organizations that establishes the terms and conditions of employment for a specific construction project and does all of the following:

(i) Binds all contractors and subcontractors on the construction project through the inclusion of appropriate specifications in all relevant solicitation provisions and contract documents.

(ii) Allows all contractors and subcontractors on the construction project to compete for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements.

(iii) Contains guarantees against strikes, lockouts, and similar job disruptions.

(iv) Sets forth effective, prompt, and mutually binding procedures for resolving labor disputes arising during the term of the project labor agreement.

(v) Provides other mechanisms for labor-management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health.

(vi) Complies with all state and federal laws, rules, and regulations.” and relettering the remaining subdivisions.

The amendment passed by voice vote

Amendment offered by Rep. Angela Witwer (D-76)

1. Amend page 11, line 16, after “(p)” by striking out the balance of the line through “facility,” on line 17 and inserting “A fire response plan and”.

The amendment passed by voice vote

Amendment offered by Rep. Ranjeev Puri (D-24)

1. Amend page 12, line 10, after “(1)” by striking out the balance of the line through “complete,” on line 11 and inserting “Upon filing an application with the commission,”.

The amendment passed by voice vote

Amendment offered by Rep. Ranjeev Puri (D-24)

1. Amend page 12, line 18, after “(2)” by striking out the balance of the line through “application” on line 21 and inserting “Upon filing an application with the commission, the applicant shall provide notice of the opportunity to comment on the application in a form and manner prescribed by the commission.”

The amendment passed by voice vote

Amendment offered by Rep. Ranjeev Puri (D-24)

1. Amend page 13, line 18, after “consider” by inserting “the feasible developed alternatives described under section 225(1)(m), if applicable, and”.

The amendment passed by voice vote

Amendment offered by Rep. Ranjeev Puri (D-24)

1. Amend page 13, line 25, after “cover.” by inserting “This subdivision does not apply to an application for an energy facility that is proposed to be located entirely on brownfield land.”.

2. Amend page 14, line 8, after “partners.” by inserting “This subdivision does not apply to an application for an energy facility that is proposed to be located entirely on brownfield land.”.

The amendment passed by voice vote

Amendment offered by Rep. Will Snyder (D-87)

1. Amend page 15, line 29, after “(i)” by striking out the balance of the line and inserting “The following minimum setback requirements, with setback distances measured from the nearest edge of any component of the facility:”.

2. Amend page 16, line 2, after “buildings” by striking out “150” and inserting “200”.

The amendment failed by voice vote

Amendment offered by Rep. Angela Witwer (D-76)

1. Amend page 16, following line 23, by inserting:

“(v) The solar energy facility will implement dark sky friendly lighting solutions.

(vi) The commission may adopt more stringent requirements under this subdivision if determined necessary for compliance with state or federal environmental regulations.”.

The amendment passed by voice vote

Amendment offered by Rep. Jasper Martus (D-69)

1. Amend page 16, line 25, after “following” by inserting “minimum”.

The amendment passed by voice vote

Amendment offered by Rep. Jasper Martus (D-69)

1. Amend page 18, line 3, after “energy” by striking out “conversion”.

The amendment passed by voice vote

Amendment offered by Rep. Jennifer Conlin (D-48)

1. Amend page 18, following line 23, by inserting:

“(vii) The commission may adopt more stringent requirements under this subdivision if determined necessary for compliance with state or federal environmental regulations.”.

The amendment passed by voice vote

Amendment offered by Rep. Jennifer Conlin (D-48)

1. Amend page 19, following line 7, by inserting:

“(iii) The commission may adopt more stringent requirements under this subdivision if determined necessary for compliance with state or federal environmental regulations.”.

The amendment passed by voice vote

Amendment offered by Rep. Angela Witwer (D-76)

1. Amend page 18, line 24, after “facility,” by striking out “both” and inserting “all”.

2. Amend page 19, following line 7, by inserting:

“(iii) The energy storage facility will implement dark sky-friendly lighting solutions.

(iv) The energy storage facility will comply with any more stringent requirements adopted under this subparagraph. The commission may adopt more stringent requirements for energy storage facilities if it considers the requirements necessary for compliance with state or federal environmental regulations.”.

The amendment passed by voice vote

Amendment offered by Rep. Ranjeev Puri (D-24)

1. Amend page 20, following line 28, by inserting:

“Sec. 227a. Before commencing commercial operations, an applicant shall file a completion report certifying compliance with the requirements of this act and any conditions contained in the commission’s certificate.” and renumbering the remaining subsections.

The amendment passed by voice vote

Amendment offered by Rep. Ranjeev Puri (D-24)

1. Amend page 21, line 4, by striking out all of subsections (2) and (3) and renumbering the remaining subsection.

The amendment passed by voice vote

Amendment offered by Rep. Abraham Aiyash (D-9)

1. Amend page 8, following line 10, by inserting:

“(4) If a city or village has a wind, solar, or energy storage facility that would normally be subject to subsection (2) and that is for an energy facility that is located entirely within the city or village, the city or village is exempt from this part as it relates to the energy facility.”.

The amendment passed by voice vote

Amendment offered by Rep. Ranjeev Puri (D-24)

1. Amend page 23, line 7, after “restrictive” by striking out the balance of the subsection and inserting “requirements than those specified in the commission’s certificate.”.

The amendment passed by voice vote

Amendment offered by Rep. Abraham Aiyash (D-9)

1. Amend page 7, line 20, after “Any” by striking out the balance of the subdivision and inserting “solar energy facility with a nameplate capacity of 50 megawatts or more.

(b) Any wind energy facility with a nameplate capacity of 100 megawatts or more.” and relettering the remaining subdivision.

The amendment passed by voice vote

Amendment offered by Rep. Jim Haadsma (D-44)

1. Amend page 23, following line 17, by inserting:

“Sec. 232. If a portion of this amendatory act is, for any reason, held to be invalid or unconstitutional, the remaining sections, subsections, or parts of those sections are not affected and remain in full force and effect.”.

The amendment passed by voice vote

Amendment offered by Rep. Reggie Miller (D-31)

1. Amend page 4, following line 7, by inserting:

“(f) “Compatible renewable energy ordinance” means an ordinance that provides for the development of energy facilities within the local unit of government using requirements that are no more restrictive than the provisions included in section 226(8). A local unit of government is deemed not to have a compatible renewable energy ordinance if it has adopted, or adopts, a moratorium on the development of energy facilities within its jurisdiction.” and relettering the remaining subdivisions.

2. Amend page 7, line 19, after “(a)” by striking out “Any” and inserting “Except for a wind energy or solar energy facility proposed to be located in a local unit of government with a compatible renewable energy ordinance, any”.

3. Amend page 7, line 22, after “(b)” by striking out “Any” and inserting “Except for an energy storage facility proposed to be located in a local unit of government with a compatible renewable energy ordinance, any”.

4. Amend page 9, following line 5, by inserting:

“(3) If, within 30 days following a meeting described in subsection (2), the chief elected official of each affected local unit communicates that it has a compatible renewable energy ordinance to the electric provider or IPP planning to construct the energy facility, then the electric provider or IPP shall file for approval with the respective local unit subject to the following provisions:

(a) This section is not applicable to a proposed energy facility that is located in more than one local unit of government, unless each affected local unit has a compatible renewable energy ordinance.

(b) An application submitted under this section shall comply with the requirements of section 225(1), except for section 225(1)(j) and (r). The local unit of government may require other information necessary to determine compliance with the compatible renewable energy ordinance.

(c) A local unit of government exercising siting jurisdiction pursuant to a compatible renewable energy ordinance must either approve or deny the application within 4 months of receiving an application. The applicant and local unit of government may jointly agree to extend this deadline by up to 4 months.

(d) If a local unit of government amends its zoning ordinance in a manner that places additional requirements on the development of energy facilities within its jurisdiction that are more restrictive than those in section 226(8), it will be deemed to no longer have a compatible renewable energy ordinance.

(e) If a local unit of government fails to approve or deny the application within 4 months, denies an application that complies with the requirements of section 226(8), or amends its zoning ordinance as described in subdivision (c), the applicant may submit an application for a certificate to the commission. If the proposed energy facility is located in more than one local unit of government and any local unit of government takes an action that would trigger this subdivision, the applicant may submit an application for a certificate to the commission.

(f) An applicant submitting an application to the commission pursuant to this subsection does not need to comply with subsection (1) or 226(1), or the requirement to submit a summary of community outreach and education efforts under section 225(1)(j).

(4) If a local unit of government approves an application pursuant to this section, construction of the proposed energy facility must begin within 5 years from the date the permit is granted and any challenges to the grant of the permit are concluded. The local unit of government may extend this timeline at the request of the applicant without requiring a new application. A permit issued under this section may not be revoked by the local unit except upon material noncompliance with the permit by the applicant.

(5) If the commission approves an application for a certificate submitted under subsection (3)(e), the local unit of government is considered to no longer have a compatible renewable energy ordinance, unless the commission finds that the local unit of government’s denial of the application was reasonably related to the applicant’s failure to provide information required by subsection (3)(a).

(6) Nothing in this section shall be construed to limit remedies available to an applicant to appeal a denial by a local unit of government under any other law of this State.”.

The amendment passed by voice vote

Amendment offered by Rep. Abraham Aiyash (D-9)

1. Amend page 15, line 10, by striking out all of subdivisions (e) and (f) and inserting:

“(e) All of the following apply:

(i) The installation, construction, or construction maintenance of the energy facility will use apprenticeship programs registered and in good standing with the United States Department of Labor.

(ii) The workers employed for the construction or construction maintenance of the energy facility will be paid a minimum wage standard not less than the wage and fringe benefit rates prevailing in the locality in which the work is to be performed as determined under 2023 PA 10, MCL 408.1101 to 408.1126, or 40 USC 3141 to 3148, whichever provides the higher wage and fringe benefit rates.

(iii) To the extent permitted by law, the entities performing the construction or construction maintenance work will enter into a project labor agreement or operate under a collective bargaining agreement for the work to be performed.

(f) The proposed energy facility will not unreasonably diminish prime or other farmland.” and relettering the remaining subdivision.

2. Amend page 19, line 13, after “facility.” by striking out the balance of the line through “applicant” on line 14 and inserting “If the certificate is appealed in proceedings before the commission or to a court of competent jurisdiction, the running of the 5-year period is tolled from the date of filing the appeal until 60 days after issuance of a final nonappealable decision. The commission may extend the 5-year period for not more than 1 year at the request of the applicant and upon a showing of good cause”.

The amendment passed by voice vote

Amendment offered by Rep. Gregory Alexander (R-98)

1. Amend page 15, line 24, after “safety.” by inserting “(h)If the proposed facility is not located in a county with a population between 40,600 and 190,000 according to the most recent federal decennial census and has at least 67,000 acres of soybeans planted according to the most recent USDA National Agricultural Statistics Service Great Lakes Region.”.

The amendment failed by voice vote

Amendment offered by Rep. Will Snyder (D-87)

1. Amend page 15, line 29, after “(i)” by striking out the balance of the line and inserting “The following minimum setback requirements, with setback distances measured from the nearest edge of any component of the facility:”.

2. Amend page 16, line 2, after “buildings” by striking out “150” and inserting “300”.

The amendment passed by voice vote

Amendment offered by Rep. Rachel Hood (D-81)

1. Amend page 10, following line 25, by inserting:

“(l) The soil and economic survey report under section 60303 of the natural resources and environmental protection act, 1994 PA 461, MCL 324.60303, for the county where the proposed energy facility will be located.” and relettering the remaining subdivisions.

The amendment passed by voice vote

Amendment offered by Rep. Gregory Alexander (R-98)

1. Amend page 15, line 24, after “safety.” by inserting “(h)If the proposed facility is not located in a county with a population between 30,500 and 40,600 according to the most recent federal decennial census and has at least 56,400 acres of soybeans planted according to the most recent USDA National Agricultural Statistics Service Great Lakes Region.”.

The amendment failed by voice vote

Passed in the House 56 to 52 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

Nov. 7, 2023

Referred to the Committee on Energy and Environment

Reported with substitute S-1

Nov. 8, 2023

Referred to the Committee of the Whole

Reported with substitute S-4

Substitute S-4 concurred in by voice vote

Amendment offered by Sen. Roger Victory (R-31)

1. Amend page 9, following line 25, by inserting:

“(5) This part does not apply to an energy facility to be located in whole or part on land that, on the effective date of the amendatory act that added this section, was farmland subject to a development rights agreement under part 361 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36101 to 324.36116.”.

The amendment failed by voice vote

Amendment offered by Sen. Ed McBroom (R-38)

1. Amend page 8, line 26, after “(1)” by striking out “This” and inserting “Subject to subsection (5), this”.

2. Amend page 9, following line 25, by inserting:

“(5) This part does not apply to a solar energy facility with a nameplate capacity of 100 megawatts or more unless the energy facility is located in an industrial zone, and the land on which the solar energy facility is located is classified as industrial for property tax purposes.”.

The amendment failed by voice vote

Passed in the Senate 20 to 18 (details)

Received in the House

Nov. 8, 2023

Amendment offered by Rep. Jaime Greene (R-65)

1. Amend page 8, line 26, after “(1)” by striking out “This” and inserting “Subject to subsections (4) and (5), this”.

2. Amend page 9, following line 25, by inserting:

“(5) The commission shall not accept an application for a certificate for an energy facility if both of the following apply:

(a) The energy facility will be owned or leased by or provide service to an electric provider whose rates are regulated by the commission.

(b) The system average interruption duration index (SAIDI), excluding major event days, for the electric provider described in subdivision (a) is over 100 minutes on average in any 2 of the last 4 calendar quarters.”.

The amendment failed by voice vote

Substitute S-4 concurred in 56 to 53 (details)

Signed by Gov. Gretchen Whitmer

Nov. 29, 2023