Michigan Public Service Commission largely upheld in solar permitting dispute

LANSING, MI. (WOWO) The Michigan Court of Appeals issued a split ruling Thursday on state rules that allow renewable energy developers to seek state approval even when local governments object, largely affirming state authority while preserving some local powers.

Appeals court largely upholds state permitting rules
A three-judge panel of the Michigan Court of Appeals ruled that state regulators largely followed proper legal procedures when implementing rules to carry out Public Act 233, a 2023 law allowing the Michigan Public Service Commission to approve large wind, solar, and battery projects over local objections.

Judges Christopher Murray, Michael Gadola, and Michael Kelly rejected several arguments from local governments challenging the rules, including claims that the state improperly limited local authority and bypassed proper rulemaking procedures.

Local governments win narrow victories
The court sided with local governments on two specific issues:

• The 30-day window for starting the local approval process must begin after a meeting with developers, not when developers offer to meet, as the state had written.
• Any county, township, city, or village that touches project lands is considered an “affected local unit,” making them eligible for certain benefits, including payments from developers.

Attorney Michael Homier, representing dozens of local communities, described the ruling as a “mixed bag,” saying, “I’m pleased with portions of the ruling that favored my clients, but disappointed the court didn’t apply the same reasoning” to other arguments.

State regulators see ruling as validation
Matt Helms, spokesperson for the Michigan Public Service Commission, said, “While the Commission continues to review the impact of specific findings of the Court’s decision on cases before us, today’s decision largely affirms the Commission’s approach and allows for continued and timely implementation of the law.”

Renewable energy advocates also welcomed the ruling. Laura Sherman, president of the Michigan Energy Innovation Business Council, said it “affirmed the ability for Michiganders to use their land as they wish while stimulating job creation and economic development.”

Background on Michigan’s renewable energy law
Public Act 233 passed in 2023 along party lines amid debates over speeding up Michigan’s renewable energy transition. The law allows local governments to retain jurisdiction over renewable energy projects if they adopt a “compatible renewable energy ordinance” with standards no stricter than statewide rules governing noise, setbacks, and other regulations.

If a local government does not adopt such an ordinance, developers may seek approval directly from the Public Service Commission.

Following the 2024 rulemaking, dozens of local communities sued, arguing the rules restricted local authority beyond what the law intended and defined local oversight responsibilities too narrowly.

Next steps
It remains unclear how the split ruling will affect renewable energy proposals currently awaiting state approval. State officials will review the court’s decision and determine any necessary adjustments, while local governments assess how the ruling impacts their role in permitting processes.

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